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Employment Law Update - Spring 2009
This article lays out recent changes in the legislation concerning employment
law. For any specific advice regarding employment law we recommend that
you consult a specialist in this area.
Compensation Limits for unfair dismissal and redundancy
- 1 February 2009
The maximum level of compensation for unfair dismissal and redundancy
cases is set to increase from 1 February 2009. The new rate increase will
only be applicable for dismissals falling on or after this date. The key
changes are as follows:
- A week's pay will be capped at £350 (previously £330) when calculating statutory redundancy payments, or basic awards in cases of unfair dismissal;
- The maximum compensatory award at the Employment Tribunal will be £66,200 (previously £63,000);
- The maximum statutory redundancy payment will be £10,500 (previously £9,900) although employers may enhance this payment if required.
Annual Holiday Entitlement - 1
April 2009
From 1 April 2009, the minimum annual holiday entitlement will
increase from 4.8 weeks to 5.6 weeks. If you work five days a week this
equates to 28 days paid holiday per annum inclusive of any public holidays.
If you work part time then you are entitled to 5.6 times your normal working
week.
Discipline, Dismissal and Grievance Handling - 6 April
2009
From 6 April the government abolished the statutory dispute resolution
procedures which apply when dismissing employees and dealing with grievances.
To replace these, ACAS have issued an updated code of practice which will
have legal force.
The penalty for failure to comply with the ACAS code of practice
could be:-
- a finding of unfair dismissal in an employment tribunal, or
- compensation award increased by up to 25%.
For grievances, employees will no longer be required to pursue a grievance
through their employer's procedure before bringing a claim in an employment
tribunal.
The revised code of practice now in force can be found on the ACAS
website: http://www.acas.org.uk/dgcode2009.
Family Friendly Policies - 6 April 2009
Prior to 6 April parents of children aged 5 and under had the right
to request flexible working arrangements as could parents of disabled children
under 18 and carers of adult dependants. From 6 April 2009, parents of children
aged 6 to 16 will also have the right to request such flexible working arrangements.
The employer is not obliged to agree to flexible working arrangements
but must properly consider such a request, including meeting with the employee
to discuss it and giving the employee the right of appeal against any decision
to refuse a request. If an employee has made a request which has been refused
they must wait 12 months before they can make another request for flexible
working arrangements.
If the employer agrees to a request, the employee's contract is
permanently changed to the revised hours/working pattern.
To be eligible to request flexible working arrangements the employee
must have worked for the employer for a period of at least 26 weeks before
they can make a request.