No need to share quite so early but beware of redundancy change

The Department for Business Innovation and Skills had originally announced a number of employment law changes which were due to come into force in April. With just a few weeks left however they have announced that some dates will now be set back.

We blogged last week about the new employment status of Employee Shareholder which had been due to start in April 2013. This is no longer going to happen and instead has been pushed back to the autumn, most likely October.

To proposed new time table is:

Spring 2013

Change to collective redundancy

Consolidation of National Minimum Wage Regulations

Summer 2013

Settlement Agreements to be made easier

12 months' pay cap on unfair dismissal compensatory awards

Revised Employment Tribunal Rules
New Tribunal fees
Whistleblowing improvements
Portable DBS (previously CRB) checks

Autumn 2013
New employee shareholder employment status
TUPE regulation reforms

Changes to Redundancy from April

From the 6th April 2013 if employers are making a number of redundancies they should be aware of the new consultation periods.

If it is envisaged that 100 or more employees are going to be made redundant within a 19 day period a minimum period of consultation of 45 days (as opposed to 90 days) will be required. The existing 30 day minimum period where at least 20 but fewer than 100 employees will be made redundant will remain.

Employers must note however that the current 90 day maximum award for a “protected award” where the employer fails to comply with its duty to consult will not be reduced.

A non statutory code of practice will also be issued which is likely to establish guidance on the meaning of the word “Establishment” which has caused a great deal of claims in the Employment Tribunal.

With an ever increasing number of large high street names making large redundancies or closing, employers should keep an eye out for the outcome of the Employment Appeal Tribunals guidance in relation to the collapse of Woolworths and whether an individual store amounted to a separate establishment.

Redundancies appear to be an ongoing issue. Very often employers are aware that redundancies can be an expensive but necessary option to avoid closure. Employers must make sure that they get it right or additional costs and the possible loss of a business is inevitable.