This section summarises in brief some recent developments that will affect the application of employment law.
Increases in compensation limits have been announced
The following key increases took effect from 1 February 2009:
- the compensatory award for unfair dismissal claims increased to £66,200 (formerly £63,000);
- a ‘week’s pay’ for the purpose of calculating redundancy payment and for various other awards (including basic and additional award in unfair dismissal cases) increased to £350 (formerly £330);
- the guarantee payment payable to an employee increased to £21.50 per day (formerly £20.40);
- the maximum statutory redundancy payment increased to £10,500 (formerly £9,900); and
- the minimum basic award of compensation where the dismissal was unfair by virtue of employee representative, health and safety, trade union or occupational trust reasons increased to £4,700 (formerly £4,400).
REPLACEMENT OF THE STATUTORY DISCIPLINARY PROCEDURES
The statutory disciplinary and grievance procedures are due to be abolished on 6 April 2009. They will be replaced by the ACAS Code on Disciplinary and Grievance Procedures (revised on 7 November 2008). This code sets out the minimum steps an employer should take when dealing with internal disciplinary and grievance procedures.
Once the statutory disciplinary and grievance procedures are abolished a claim will not be held to be automatically unfair if procedural steps have not been followed.
The requirement to lodge a grievance before bringing a claim will also be abolished. The new code still allows for financial penalties to apply where either party unreasonably fails to comply with the provisions of the new code, but these are capped at 25%, down from the potential 50% penalty under the current statutory procedures.
By Nisha Lalji, paralegal in the Salans employment department. E-mail: nlaljii@salans.com.
