Pictured: Dippalli Naik, Solicitor, Sydney Mitchell
LLP
Midlands law firm Sydney Mitchell LLP warns businesses of the
impact of new tribunal award rates. From 1 February 2012, the
limits in respect of employee claims will increase in accordance
with The Employment Rights (Increase of Limits) Order 2011 (SI
2011/3006). These increases are a further blow to already stretched
businesses in austere times. Dippalli Naik, Solicitor, at Sydney
Mitchell LLP, outlines the changes:
1. For payments in relation to rights protected under the
Employment Rights Act 1996:
• The limit on the weekly amount payable under the
insolvency provisions of the Act is increased to £430
• The limit on the statutory guarantee payment payable to
employees laid off work is increased to £23.50 a day
• The maximum basic award for unfair dismissal is increased
to £12,900
• The maximum compensatory award for unfair dismissal is
increased to £72,300
• The maximum amount of a week's pay for calculating the
basic or additional award for unfair dismissal or for redundancy
payment is increased to £430
2. For payments in relation to rights protected under the Trade
Union and Labour Relations (Consolidation) Act 1992:
• The award in relation to unlawful inducement relating to
trade union activities or collective bargaining is increased to
£3,500.
• The minimum basic award for unfair dismissal is increased
to £5,300
• The minimum compensation in relation to exclusion from a
union in contravention to section 174 is increased to
£8,100
Dippalli added "In addition to those increases listed above,
there are future developments that companies should be aware of
from now, to ensure they are ready for any impact"
UPCOMING CHANGES:
• From 8 March 2012
As a result of EU legislation, the Government is required by
this date to increase unpaid parental leave from 3 months to 4
months per child under the age of 5.
• From 1 April 2012
Statutory Maternity, Paternity and Adoption Pay will increase
from £128.73 to £135.45 per week. The weekly earnings
threshold for these payments will also increase to £107 per
week.
• From 6 April 2012
- The qualifying period to bring an unfair
dismissal claim will increase from one year to two years. This
change will only apply to new joiners from 6th April 2012, as
opposed to employees who already have 1 year's service.
- In addition, regulations dealing with
Employment Tribunal reform are expected to come into force from 6
April 2012. Among other things, they deal with Judges being able to
sit alone on unfair dismissal cases, an increase in the maximum
amount of costs that can be claimed (from £10,000 to
£20,000) and an increase in the value of deposit orders that
can be ordered from £500 to £1,000, where an employment
judge considers that all or part of a claim (or a response) has
little reasonable prospect of success.
- Statutory Sick Pay will also rise from
£81.60 to £85.85 per week.
Businesses should seek legal advice on the impact of these
changes from their legal advisers or please contact Dippalli or a
member of their Employment Team at Sydney Mitchell Solicitors on
0121 698 2200.
Sydney Mitchell LLP has offices in Birmingham City Centre,
Sheldon and Shirley.