Employment Law Update April 2013
Reduction in collective consultation period – 6th April 2013
Where 100 or more redundancies are proposed, the 90-day consultation period is now reduced to 45 days.
Prior to 6th April 2013, where an employer was planning to dismiss 20 or more employees by reason of redundancy over any 90-day period, collective consultation was necessary, before a decision to go ahead with the redundancies.
Consultation must include giving consideration to alternatives to dismissal, a reduction in the number of employees affected and ways of mitigating the impact.
A key aspect of this has and continues to be the "notification period" - a minimum period which must elapse between the start of consultation and the first dismissal.
From 6th April, the notification period has been reduced from 90 days to 45 days, where 100 or more redundancies are planned. A 30-day period applies for 20 to 99 redundancies.
For employers, this means that planned changes can be put in place more quickly and there will be a saving in administration and salary costs, whilst for employees the period of uncertainly that is experienced during the notification period is reduced, aiding morale and productivity.
A new ACAS non-statutory code of practice on redundancy will be introduced to advise on best practice in relation to consultation and difficult issues that may arise.
Increase in sick pay – 6th April 2013
Statutory sick pay will increase from £85.85 a week to £86.70 a week.
From 06 April 2013 employers paying SSP should do so at the new rate of £86.70 per week.
Increase in maternity, paternity and adoption pay – 7th April 2013
Statutory maternity, paternity and adoption pay has increased from £135.45 a week to £136.78 a week.
Organisations must ensure that from this date, payments made are in line with the new rate and policies which make reference to the statutory rate must also be amended and updated.
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