The Enterprise and Regulatory Reform Bill has been laid before Parliament.
The proposed legislation continues the Coalition Government's policy of reforming employment law in an attempt to improve efficiency in the employment tribunal system and to reduce red tape.
The most noteworthy provisions of the Bill includes:
- A mandatory period of ACAS conciliation before a claim can be lodged at the tribunal – this is an attempt by the Government to promote the early resolution of disputes before they are escalated to the Tribunal system.
- A power for the Secretary of State to vary the maximum compensatory award for unfair dismissal – it is currently envisaged that any maximum compensatory award cannot be set higher than three times the median annual earnings (which would potentially give a maximum amount which is not dissimilar from the current cap).
- A power for the tribunals to impose financial penalties on an employer where the employer's behaviour in committing a breach of a claimant's employment rights had "aggravating features" – the penalty must be set at 50 per cent of any compensation awarded, subject to a maximum penalty of £5,000.
- A change to the law on whistleblowing such that any qualifying disclosure must be made in the public interest – this is to address the case of Parkins v Sodexho Ltd which made it possible for a worker to benefit from the protection of whistleblower legislation in circumstances where the worker complained to their employer about a breach of their employment contract.
- The renaming of 'compromise agreements' so that they are known as 'settlement agreements'.
We will of course keep you updated on any developments to these proposals as the Bill makes its way through Parliament.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
