Significant Changes to Employment Law in 2014

So far 2014 has brought with it a raft of key employment law changes. We take a look at 5 of the most crucial changes below.

1.Pre-Claim ACAS conciliation

Acas mandatory early conciliation has now come into force which means that anyone wishing to make a claim to the Employment Tribunal will have to contact Acas before they do so.

The process is free and involves an impartial Acas conciliator engaging with both parties to try to facilitate a settlement between them.

Failure to follow the procedure could result in claims being disbarred.

More information can be found at the Acas early conciliation website, and in the detailed early conciliation document produced by Acas.

2. Increase to Employment Tribunal fees

Employment Tribunal fees were introduced last year. Claims which can be brought before a Tribunal have been categorised as either “Type A” or “Type B”. Different fees apply to each, with Type B claims attracting higher fees (namely, a £250 issue fee AND a £950 hearing fee).

As of 6th April 2014, a wider range of cases will be classified as the higher ‘Type B’ claims. These include those relating to, equal pay, failure to inform and consult under TUPE, failure to allow compensatory rest under the Working Time Regulations and breach of the right to request time off for training.

3. Financial penalties for losing employers

Tribunals will have the power to order that a losing employer pay a financial penalty of between £100 to £5,000 where the case has ‘aggravating features’. 

This may apply even if no compensation is awarded to the Claimant and is in addition to repaying the Claimant’s Tribunal fees. Importantly however, the penalty is paid to a Government fund and not to the Claimant.

4. Increases to Employment Tribunal compensatory award limits

For dismissals where the effective date of termination is on or after 6 April 2014, the maximum amount of a week’s pay, used to calculate unfair dismissal basic awards and statutory redundancy payments, will rise to £464 (from £450).

This means that the new maximum statutory redundancy payment will be £13,920 (up from £13,500).

The maximum compensatory award for ordinary unfair dismissal claims will increase to £76,574 (from £74,200) – subject also to the additional cap of a year’s pay, if lower

5. Abolition of statutory discrimination questionnaires

Most employers will be relieved to hear that since the 6th April 2014, the rule requiring employers respond to statutory discrimination questionnaires or face adverse inferences being drawn by the tribunal was abolished.

The employer will no longer be under any legal obligation to answer questions; however, a tribunal may look at whether and how the employer has answered questions as a contributory factor when making their overall decision on the discrimination claim.

It will certainly be very interesting to see how these changes affect procedure in practice. The idea is of course to encourage early settlement and reduce the number of claims that go before the Employment Tribunal.

For more information or to discuss a particular Employment Law issue contact Grainger Appleyard Solicitors on 01302 327257.

Relevant links:

http://www.acas.org.uk