Employment Legislation Update January 2012
This is just a quick reminder that the limits on the statutory caps for a number of Tribunal awards will increase for dismissals which occur on or after 1 February 2012.
The limit on a week’s pay (gross) for the calculation of redundancy and the basic award will increase from £400 to £430 meaning that the maximum basic award will increase from £12,000 to £12,900. The maximum compensatory award will increase from £68,400 to £72,300.
However, we also wanted to draw your attention to two consultations which the Government is currently running and which are due to end on 31 January. The first calls for evidence on the effectiveness of the current TUPE legislation and the second for evidence relating to the collective redundancy process. More details about the consultations, including a list of the questions which you are asked to respond to, can be found on the Department of Industry and Skills website (http://www.bis.gov.uk) in the consultations section. Although any subsequent changes, particularly to the TUPE legislation, are likely to be constrained by the European framework within which they were originally drafted, anyone with evidence of the unintended consequences of the current regimes in either area is encouraged to respond to this consultation.
About the author
Joanne Stronach is joint Head of Burnetts' Employment Law & HR team.