Employment law in 2012: what employers can expect

2011 saw a number of key changes to the employment law landscape with the abolition of the default retirement age, drastic reform to the rights of agency workers and the enactment of the Bribery Act 2010. With the government’s recent announcements regarding their future plans for legislation and tribunal reform, 2012 looks set to be just as busy. James Upton looks ahead to the developments that employers can expect in the coming 12 months.

31 January 2012

• Closure date for views on the effectiveness of TUPE and the consequences of reducing the 90-day period for collective consultation in large-scale redundancy situations. The views will be used to formulate policy proposals that will be put forward for formal public consultation later in the year.

1 February 2012

• A week's pay increases from £400 to £430 and the maximum compensatory award increases from £68,400 to £72,300.

Spring 2012

• The government will report back on its "Red Tape Challenge", aimed at identifying current legislation that could be scrapped, merged, simplified or improved to reduce the burden of regulation on businesses.

6 April 2012

• The unfair dismissal qualifying period will increase from one to two years.
• The amount of deposits a tribunal can order a party to pay will increase from £500 to £1,000 and the maximum amount of costs an employment tribunal can award will increase from £10,000 to £20,000.
• Tribunals will be empowered to direct parties to bear the expenses of witness attendance, including the expenses of witnesses called by the successful party.

5 June 2012

• An additional bank holiday will take place on Tuesday 5 June 2012 to mark the Queens diamond jubilee. The spring bank holiday has been moved to Monday 4 June 2012 to create a longer weekend. Employers should ensure contractual documentation and policies are clear about employee obligations and holiday entitlements.

October 2012

On 1 October 2012 pensions auto-enrolment begins for larger employers and will be formally implemented over four years. Employers should start looking at:

• when they have to make arrangements for auto enrolment;
• who is a jobholder entitled to automatic enrolment; and
• whether that jobholder is within a qualifying scheme.

Future proposed changes and consultations but no date set

• Compulsory early Acas conciliation before a claim can be lodged at the tribunal
• A long term programme of reform to increase the use of mediation to resolve disputes
• Financial penalties for employers who lose at tribunal, levied at the tribunal’s discretion
• Consultation on ‘protected conversations’, enabling employers and employees to talk about their concerns e.g an employer's concern about an employee's performance,  without fear that the discussion will be used against them
• Consultation on simplifying compromise agreements
• Consultation was launched on 14 December 2011 on charging a fee to bring a claim in the employment tribunal
• Consultation on “rapid resolution” for low value and straightforward claims.