More employment law changes! Here are 5 for July…

This year so far has seen a huge number of changes to UK employment law, many of which require employers to take action – and July is no exception. Here 5 changes which come into effect from the 29th of July:

UK employment law

Tribunal claimants to pay fees

Probably the most important change is the introduction of fees for employees issuing claims against their employers in tribunals. There has been much debate over the effects of the new fees, with some arguing it could discourage claimants with genuine cases to bring from going to a tribunal. The basic two levels of claims are as follows:

–          For level 1 claims, the issue fee will be £160 and the hearing fee will be £230. Claims on this level include those for unpaid wages, holiday pay and redundancy payments.

–          For level 2 claims, the issue fee will be £250 and the hearing fee will be £950. Claims on this level include those for unfair dismissal, discrimination and equal pay.

New employment tribunal rules

As well as the introduction of fees for claimants, rules for the actual tribunal process have also changed. The new rules include a combined pre-hearing review and case management discussion, and where possible encouraging parties to use alternative dispute resolution such as workplace mediation.

Reduced cap on unfair dismissal rewards

The cap on wards for claimants of unfair dismissal goes down to 12 month’s pay, up to the figure of £74,200. 

Compromise agreements renamed

Compromise agreements are to be called ‘settlement agreements’.

Pre-termination negotiations

Any evidence of pre-termination negotiations between employers and employees cannot be used in normal unfair dismissal claims. It also applies where no formal dispute has yet taken place.

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