Major changes to employment law expected in 2013

Thanks to Unite the Union for this information.

Many consultations and Government announcements on employment law took place in 2012 with resulting legislative changes likely in 2013 and beyond. However, the timescale for many of these remains unclear. The start of 2013 has seen further consultations announced.

The main pieces of legislation expected to receive Royal Assent in 2013 are the Enterprise and Regulatory Reform Bill, the Growth and Infrastructure Bill and the Children and Families Bill which are all currently progressing through Parliament. Some anticipated dates for provisions in these Bills to come into force are indicated below.

More information on the proposed reforms is in the Employment law reform progress report published in March 2013, and on the Department of Business Innovation and Skills’ web page ‘Making the labour market more flexible, efficient and fair’ (see Useful contacts below).

From February

• Increased limits on employment tribunal awards came into force on 1 February:
• a 'weeks pay' rose from £430 to £450
• the maximum compensatory award for unfair dismissal rose from £72,300 to £74,200
• the maximum basic award (and redundancy payment) rose from £12,900 to £13,500
• guarantee pay increased from £23.50 to £24.20 a day.

In March

• Unpaid parental leave increased to 18 weeks on 8 March - to comply with the EU Parental Leave Directive.

In April

• The rate of statutory sick pay (SPP) increased on 6 April from £85.85 to £86.70. The rates of maternity allowance and statutory maternity pay (SMP), statutory paternity pay (SPP), and statutory adoption pay (SAP) increased on 7 April from £135.45 to £136.78. The weekly earnings threshold for these payments also increased from £107 to £109..
• All employers have to start reporting PAYE information in real time (except where HMRC has specified a later date) - from 6 April.
• The 90-day minimum collective redundancy consultation period for large-scale redundancies was reduced from 90 days to 45 days - from 6 April. New Acas guidance is expected.
• Further changes to immigration rules and fees – from 6 April. CIPD members can see our factsheet on immigration law changes.
• Go to our Immigration law changes factsheet

In 'Summer'

• Employment tribunal fees are expected to be introduced.
• Employment tribunal procedural changes following the Underhill Review are expected to be implemented.
• A salary-based cap on compensatory reward for unfair dismissal is expected to be introduced
• Compromise agreements to become ‘settlement’ agreements, with a new Statutory Code of Practice and guidance.
• Whistleblowing changes may be introduced.
• Criminal record checks changes are expected.

In September

• If passed in the Growth and Infrastructure Bill, the Government intends to introduce a new ‘employee shareholder’ status (previously known as ‘employee owner’). Those accepting employee shareholder contracts will agree to giving up certain employment rights in return for company shares.

In October

• National Minimum Wage rates may increase - The Low Pay Commission is due to report soon.

In 'Autumn'

• Changes to the TUPE regulations may be introduced – depending on the outcome Government’s consultations.

Employment-related Acts and Bills

• Two Bills introduced in 2012, the Enterprise and Regulatory Reform Bill and the Growth and Infrastructure Bill (see above in the 2012 changes) are continuing their progress through Parliament. They are expected to receive Royal Assent in Spring 2013 with the changes coming info force later in 2013.
• The Children and Families Bill was introduced to House of Commons on 4 February 2013. It introduces a new shared parental leave system and statutory shared parental pay, a right to time off for antenatal care, and extends the right to request flexible working to all employees. If passed, many of these changes are expected to be introduced in 2014-15.