Recruitment News

Employment Law Changes Have Arrived: How will It Affect You?


Time to welcome in the Enterprise and Regulatory Reform Act 2013, as well as the Growth and Infrastructure Act 2013. If you don’t understand how these two pieces of legislation will affect your employment rights, we’re here to fill you in.

For the government, the goal is to remove barrier to recruitment, in a bid to lower levels of unemployment and boost the economy. They’re also hoping to streamline the employment tribunal system and increase productivity. Unsurprisingly, this means that employees will have to give up some of their rights.

Some of the Changes

If you want to make an unfair dismissal claim by a specialist solicitor such as , you have to have been employed at the company for two years at more. There are a few exceptions to this rule, but some new exceptions include dismissing someone based on their political opinions and affiliation. It was decided that dismissing people based on that reason was against their human rights.

The tribunal procedure has been significantly revised, and the government will have the power to cap the amount of compensation any person receives through the employment tribunal. The maximum amount of money you can receive is £74,200 or a month’s salary… whichever is lower.

When it comes to whistleblowing, you will only receive the traditional protection if it’s in the public interest.

The Employment Tribunal

One of the most important changes is that you now have to pay for the luxury of employment justice. Previously the employment tribunal has been free to use ever since it was created in 1964. A one day hearing will set you back £1,100 in tribunal fees. This has to be paid by both the employer and the employee.

Pre-Termination Negotiations

Sometimes, employers will want to have a discussion with their employee about ending their employment. This won’t be the final settlement, but it will be a conversation to ascertain where everyone stands. From now onwards, you can’t use what’s discussed in this conversation as evidence in an employment tribunal.

All organisations should also be able to access a portable CRB check (known as ‘DBS’), which will show the criminal history of any candidate that is registered with the scheme. This will save repeatedly applying for your CRB. It will be automatically updated online.

Employee Shareholder Scheme

This process is certainly interesting. In order to gain a minimum of £2,000 worth of shares in the company, you can forgo certain employee rights. On the first £50,000 shares, it will be exempt from capital gains tax. Employees have to make the decision – an employer can’t force them. They won’t be able to request time off for study or training leave, make a flexible working request (except when returning from parental leave), claim ordinary unfair dismissal, or claim a right to statutory redundancy payments.

Your employer can’t dismiss you if you refuse to be a part of this scheme and the individual must receive legal advice about the situation, paid for by the employer.

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