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Key Employment law changes 2012

Last year the government announced a whole raft of proposals for possible employment law changes. This year it is going to be a busy time for businesses when a number of those proposed changes start to come in to force.

We've highlighted some of the key changes below and the dates when they become effective from. There are also a number of other Employment Law developments that are up and coming, but for which no date has yet been set. We'll keep you informed about this as and when they evolve over the coming months.

1st February

Employment Rights Order 2011

The Employment Rights Order 2011 comes into force, increasing limits on employment tribunal awards and other amounts paid under employment law. For example, the maximum amount of a 'week's pay' (used for calculating an unfair dismissal basic award and statutory redundancy payments) will increase from £400 to £430, the maximum daily amount of statutory guarantee payment will increase from £22.20 to £23.50 and the maximum unfair dismissal compensatory award will increase from £68,400 to £72,300.

8th March

Parental leave increases from three to four months

The minimum period of leave permitted to parents following childbirth or adoption increases from three to four months, and at least one month of the four cannot be transferred to the other parent.

6 April 2012

Changes to unfair dismissal qualifying period

The qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years.

Increase in Statutory Payments

The weekly rate of statutory sick pay will increase from £81.60 to £85.85 and standard rates for statutory maternity pay, statutory paternity pay and statutory adoption pay will increase from £128.73 to £135.45. The lower earnings limit for these will increase from £102.00 to £107.00.

1 October 2012

Automatic enrolment into a pension scheme

Auto-enrolment into workplace pension schemes will begin for larger employers employing 120,000 employees or more.

Published 31st January 2012

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