Employment changes finalised in Enterprise and Regulatory Reform Act and Growth and Infrastructure Act

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The Enterprise and Regulatory Reform Act and the Growth and Infrastructure Act were both passed by Parliament on 25 April 2013. We summarise the key employment provisions and, where they are known, the dates on which the provisions should come into force.

Enterprise and Regulatory Reform Act 2013

Pre-termination negotiations to be inadmissible in unfair dismissal claims and compromise agreements to be renamed settlement agreements – Summer 2013

  • Unfair dismissal
    • Removal of qualifying service requirement where employee is dismissed for political opinions or affiliations – 25 June 2013
    • New cap on compensatory award (current proposal is the lower of one year’s pay or the existing cap) – Summer 2013
  • Whistleblowing laws
    • New requirement for disclosures to be made in the public interest – 25 June 2013
    • Removal of requirement for disclosures to be made in good faith – 25 June 2013
    • Introduction of concept of vicarious liability of the employer and personal liability of co-workers
  • Employment tribunals and employment appeals
    • EAT judges sitting alone – 25 June 2013
    • Extension of tribunals’ power to make deposit orders – 25 June 2013
    • Financial penalties for losing employers – Spring 2014
  • ACAS mandatory early conciliation process – April 2014
  • Equality
    • Revocation of third party harassment provisions in the Equality Act 2010
    • Abolition of questionnaire procedure in discrimination cases
    • Extension of race discrimination definition to expressly cover "caste" – by April 2015
  • Equal pay audits - power for government to legislate at a later date to enable tribunals to order compulsory pay audits

Growth and Infrastructure Act 2013

  • New type of employee ownership arrangement under which employees give up some of their employment rights in exchange for shares in the employer – 1 September 2013

Keep an eye on our website – we will keep you posted on further developments and the developing legislative timetable under the Enterprise and Regulatory Reform Act. We will also keep you updated on other changes to employment law which are due to happen this year, including TUPE reform, the new tribunals rules of procedure and the new fees regime.

In addition, we are running, in September and October, national seminars on "Ending the employment relationship". These seminars will consider in detail the new law on settlements and pre-termination negotiations and will cover how to exit employees in difficult situations. Booking for these events will commence soon.

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