Increase in compensation limits and start date for extended right to request flexible working announced

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The Government has published the new compensation limits for certain employment tribunal awards and statutory payments from 6 April 2014. It has also confirmed 30 June as the implementation date for the extended right to request flexible working.

Increase in compensation limits

The most notable changes in limits coming into effect on 6 April 2014 are:

  • Compensatory award limit for unfair dismissal will rise from £74,200 to £76,574 (subject to the overarching limit of one year's pay, which has existed since July 2013).
  • Maximum 'week's pay' (for the purposes of calculating the basic award for unfair dismissal and statutory redundancy payments, among other things) rises from £450 to £464.
  • Guaranteed pay increases from £24.20 a day to £25.

The new rates will apply where the event giving rise to the award/payment occurs on or after 6 April 2014. For example, if an employee is awarded compensation for unfair dismissal in respect of a dismissal which occurred on or after 6 April 2014, the new limits will apply.

We will be looking at these increases in compensation, along with other key employment and case law developments as part of our Member Briefing: Employment Law Update events which are running from next month - book your place soon as places are filling up fast.

> more about Member Briefing: Employment Law Update

Extended right to request flexible working from 30 June this year

We previously informed you of a delay in the implementation of the extended right to request flexible working to all employees with 26 weeks continuous employment, (and replacement of the current statutory procedure with a requirement on employers to deal with applications ‘reasonably’). See our HR Briefing -Implementation date of the extended right to request flexible working also proves to be flexible.

Originally, it was proposed that the extension would take effect from 6 April 2014, but due to a delay in the Children and Families Bill receiving royal assent (the Bill includes the legislative provisions extending the right to request) implementation was put back.

The Government has now confirmed a new implementation date of 30 June 2014 rather than waiting for the next common commencement date in October.

With changes imminent, there is still time to attend one of our Family Rights Reform seminars, which are currently running around the country. They will help ensure that you have your flexible working process and procedures fit for purpose in time for the June start date.

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