Welcome. Donna Gibb, HR Service Manager Elaine Masson, Senior Employment Trainer Empire

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2 Welcome Donna Gibb, HR Service Manager Elaine Masson, Senior Employment Trainer Empire

3 Today s Session Employment Law Update - Where are we now and where are we going? Brief reflection back on Changes so far and what s coming up Significant Case Law An overview of the Transfer of Undertakings, Protection of Employment Regulations 2006 (TUPE) 3

4 Employment Law Update 2013 Legislative Changes Feb 2013 : New Compensation Limits in effect Basic Award rises to 13,500 ( 12,900) Compensatory Award rises to 74,200( 72,300) Value of Week s pay now 450 ( 430) NB there are proposals to limit compensatory award to max 12 months salary. 4

5 March 2013: Employment Law Update 2013 Legislative Changes Parental Leave increased from 13 to 18 weeks for each child up to age 5. Adoptive parents must take by fifth anniversary of adoption or by 18 th birthday of child. NB Parental Leave remains unpaid 5

6 Expected 2015 Employment Law Update 2013 Legislative Changes New system of shared parental leave designed to allow parents to share statutory maternity leave and pay. Parents will be able to share up to 50 weeks leave and 37 weeks pay. 6

7 April 2013 Employment Law Update 2013 Legislative Changes New Statutory payment rates: Stat Mat/Pat/Adopt increase from to (lower earnings limit increases from 107 to 109) Stat Sick Pay increases from to (lower earnings limit increases from 107 to 109) Mat Allowance increases from to (earnings threshold remains at 30) 7

8 April 2013 Employment Law Update 2013 Legislative Changes Collective redundancy consultation period reduced to 45 days where 100 or more redundancies are proposed ACAS non-statutory code of practice that will address the key principles of redundancy consultation. 8

9 April 2013 Employment Law Update 2013 Legislative Changes Employers required to use real-time information to report payroll deductions before or when they make them (rather than at year end) 9

10 Employment Law Update 2013 Legislative Changes October 2012 National Minimum Wage Adult rate (over 21) 6.19 per hour Development rate (18 20) 4.98 per hour Young Workers rate(16 17) 3.68 per hour Apprenticeship rate 2.65 per hour 10

11 June 2013 Employment Law Update 2013 Legislative Changes Workers are protected where they make a qualifying disclosure. Protected disclosures must be made in good faith and the public interest 11

12 June 2013 Employment Law Update 2013 Legislative Changes Removal of unfair dismissal qualifying period where the reason or principal reason for the dismissal "is, or relates to, the employee's political opinions or affiliation". 12

13 July 2013 Employment Law Update 2013 Claimants will be required to pay a fee at the issue of their claim and a further fee if it proceeds to a hearing 2 stages of Fees payable Power of ET to award reimbursement of fees from losing party 13

14 Employment Law Update 2013 What s coming up?... Expected 2014 Extension of right to request flexible working It is generally thought that this change is unlikely to bring an influx of flexible working requests. The majority of employees who need or wish to work flexibly are those with childcare or caring responsibilities, most of whom are already able to make a request. Grandparents are a noted exception from the current system and they may well find this new right attractive. 14

15 Employment Law Update 2013 What s coming up?... Expected October 2013/April 2014 Changes to Equality Act Liability for Third-party harassment under the Equality Act will be removed. Elimination of need to complete questionnaire in discrimination cases. 15

16 Employment Law Update 2013 What s coming up?... Pre termination settlement agreements may be allowed and inadmissible in unfair dismissal claims. Strongly advised to seek advice and guidance before entering into any pre termination negotiations 16

17 Employment Law Update 2013 What s coming up?... Expected autumn 2013 new type of employee ownership arrangement, under which employees would give up some of their employment rights in exchange for shares in their employer. Employee owners would give up employment rights such as ordinary unfair dismissal and statutory redundancy payments. 17

18 Employment Law Update 2013 What s coming up?... Expected April 2014 Employment Tribunal reforms which will introduce compulsory pre-claim conciliation period of one month. Will stop the clock on lodging time. 18

19 Employment Law Update 2013 Case Law Update Holidays and Sickness Where an employee falls ill immediately prior to going on annual leave? Where an employee falls ill during a period of annual leave? Where an employee on long term sickness absence is unable to take their annual leave? 19

20 Employment Law Update 2013 Questions 20

21 Transfer of Undertakings (Protection of Employment) Regulations 2006 TUPE protects employees who belong to the undertaking (a company, organisation or organized work activity) that is being transferred It will apply when there is a relevant transfer Some examples of when it may apply.. 21

22 Examples of TUPE Charity A Charity B 22

23 Examples of TUPE Charity A Charity B Charity C 23

24 Examples of TUPE Charity A Charity B 24

25 Examples of TUPE Charity A retenders catering contract Contractor A Contractor B 25

26 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 1: Automatic transfer principle applies. All employees employed in the undertaking to be transferred automatically become employees of the new employer. 26

27 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 2: There must an entity that retains its identity for TUPE protection to apply e.g. it must look the same before and after the transfer 27

28 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 3: Employees transfer of same terms and conditions and continuity of service is maintained 28

29 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 4: Changes to employment terms before or after a transfer can only be made where the sole or principal reason is: A reason unconnected with the transfer; or A reason connected with the transfer which is an ETO reason. 29

30 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 4: ETO = Economic Technological Organsation Must involve a change in the numbers and functions of the workforce. 30

31 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 4: Example of permitted ETO changes: Restructuring involving changes in job roles and numbers of employees involved. Introduction of new technology NB Redundancy situations may be covered by ETO changes. 31

32 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 5: Harmonisation of terms and conditions is not permitted under TUPE as such but.. Guidance is that changes to terms and conditions agreed by the parties which are entirely positive are not prevented by the Regulations". 32

33 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 6: Information and Consultation obligations apply to both the old and new employer. Employee Liability Information should be given to new employer at least 14 days before transfer date. Financial penalties of 500 per employee 33

34 Transfer of Undertakings (Protection of Employment) Regulations 2006 Key Points 7: Consultation must be collective through elected employee representatives Who should be consulted employees affected by the transfer (so may include others in the new or old employer whose jobs may be affected) The transferor and transferee are jointly liable for any award of compensation made by an employment tribunal for failure to inform and consult max 13 weeks pay per employee. 34

35 Proposed Changes to TUPE Service provision changes (e.g. change of contractors) to be repealed. Removal of need to provide employee liability information. Change of location to be permitted as ETO reason Smoother process for redundancy and TUPE consultation requirements. Individual consultation only for small businesses. 35

36 Thank You We hope that you have found the workshop useful and interesting. Enjoy the rest of your day With thanks from the Empire team. 36

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