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Dear Peter,
Happy New Year to you all.
The main headline this month is that the new statutory limits on payments have been announced which take effect on 1 February. Also, confirmation has been given that the much maligned statutory dismissal and grievance procedures, introduced in 2004, are to be abolished.
Feel free to contact me if would like any more information about any of these news items.
Why not forward this email to any of your contacts who might find it of benefit?
Regards
Peter Etherington  Tel: 01664 430373
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| Welcome news? |
| Statutory dismissal procedures to be abolished |
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As mentioned in my November newsletter, since 2004 employers wishing to dismiss an employee have had to follow dismissal and disciplinary procedures that are laid down in law. Failure to follow the procedures to the letter results in tribunals finding dismissals to be "automatically unfair" when claims are brought. The procedures, which are written in such a way as to appear to be related to cases of misconduct, have to be followed in the case of most other types of dismissal, including redundancy dismissals and dismissals of employees on the grounds of ill-health. This has led to confusion for employers and employees alike, a large amount of tribunal time being spent on dealing with technicalities linked to the law and some very odd outcomes at the tribunal.
Following a review the Government has now published its Employment Bill which, when enacted, will repeal the statutory procedures. However, at the same time new measures will be brought in to encourage employers to deal fairly with employees on termination and stiffer penalties for those who act unreasonably. The Government hopes to introduce the new legislation in October this year, but it could be delayed until April 2009. Until then we are stuck with the unwieldy statutory procedures, so I would advise you seek help whenever intending to terminate the employment of one of your staff.
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| Not so welcome news? |
| Limits on payments increased |
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From 1 February 2008 certain limits on payments will be increased. The key ones for employers to be aware of are the cap on a week's pay which is used when calculating statutory redundancy pay (increased from £310 to £330) and the maximum compensatory award for unfair dismissal (increased from £60,600 to £63,000). In the case of a redundancy payment, the new limit applies to anyone who is made redundant on or after 1 February or whose calculation date for redundancy purposes falls on or after that date (i.e. if terminated before 1 February and paid in lieu of notice where notice would have taken them past that date). In the case of the unfair dismissal limit, the new limit would apply for an employee found to be unfairly dismissed whose termination took effect on or after 1 February. |
| Part-time work for maternity returners? |
| Employers need to take care when new mums request part-time work |
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A recent case at the Employment Appeal Tribunal (EAT) has highlighted the need for employers to be prepared to consider requests for part-time working from employees returning from maternity leave very carefully, and to ensure that any rejection of the requests are made only after consultation and a genuine attempt to meet the needs of the employee. In Shaw v CCL, the EAT found that CCL's rejection of Mrs Shaw's request to return to work on a part-time basis with much more limited travel than previously, amounted to constructive unfair dismissal.
More and more employees are today opting to work part-time for a variety of reasons (not just related to childcare). Employers who are able to accommodate more flexible working patterns benefit from a widened market when recruiting staff. |
