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What are the Key Law Employment Changes in 2013?

Date Added: July 24, 2013 10:08:58 PM

These changes should be discussed during management training or in training courses. It should be mandatory for those who plan to take project management training. Take a look at some of the key changes for this year.

Implementation of the Enterprise and Regulatory Reform Bill

Under this law, an employer and an employee can have a "protected conversation" with regards to reaching settlements in employment termination. The Secretary of State was able to make changes on the limits regarding the unfair dismissal compensatory award. 

Introduction of Employee-Shareholder Contracts

This aims to make the workforce more committed and connected. This involves an employment contract that stipulates the giving of shares to employees if they choose to waive specific employee rights. Exemption from capital gains tax will apply to the shares up to a certain amount. This can make an employee feel more part of the company and not just a paid worker.

Increase in the Limit on the Amount of the Compensatory Award for Unfair Dismissal

This will affect struggling companies and smaller businesses. Limit is increased to £74,200. Aside from this, there are also additional changes through the Employment Rights Order of the previous year.

Increase of Unpaid Parental Leaves

Parents will get an additional five weeks on top of the standard 13 weeks, giving more time to do their parental duties. 

Reduction of Collective Consultation Period

Now, you don't have to deal with 90 days of consultation. It was trimmed to half, which is 45 days.

Portable DBS Checks

This addresses negligent employment and security. DSB DBS checks, which are formerly known as Criminal Records Bureau Checks, are now portable. A new check need not be issued to the employee everytime he starts new employment. This move can lessen the threats of unlawful employment and reduce the costs of having to check for new checks.

Payroll Will Be on Real-Time

This will be handy to employees who want to check the deductions made on their payrolls. Under this law, employers are required to report the deductions during or before they are made. This is a great improvement considering that previously, employees could only find out about the deductions just once a year.

Increase in Adoption, Maternity and Paternity Pay Raise

It will increase to almost £140 per week, so new or expecting parents can breathe easier. 

Increase in Statutory Sick Pay Rate

Under the new law, weekly rate given will be £86.70, from £85.85