Employment Law Briefing – April 2014
This business briefing sets out the key changes to employment law that take effect from 6 April 2014.
The Acas early conciliation procedure will be introduced.
Section 138 of the Equality Act 2010 (which deals with discrimination questionnaires) will be repealed.
- Employment tribunals will be given the power to impose a financial penalty on employers who lose at tribunal of 50% of any financial award, with a minimum threshold of £100 and a maximum cap of £5,000.
- Employment tribunal compensation limits will increase. For example, the maximum compensatory award for unfair dismissal will rise from £74,200 to £76,574.
Pay and benefits
Several social security benefits and payments will increase by 1%. For example:
- The rate of statutory sick pay will increase to £87.55 (up from £86.70).
- The rate of statutory maternity pay will increase to £138.18 (up from £136.78).
- The rates of statutory adoption pay, statutory paternity pay, and additional statutory paternity pay will increase to £138.18 (up from £136.78).
- The government will abolish the statutory sick pay record-keeping obligations and allow employers to keep records in a flexible manner more suited to their organisation.
- The Percentage Threshold Scheme, which enables employers to partially recover statutory sick pay from HMRC, is expected to be abolished.
Tax and NICs
- Legislation will be introduced that reduces employer NICs bills each year by entitling every business and charity to a £2,000 Employment Allowance.
- The extension of a concession to the real time information (RTI) rules allowing employers with fewer than 50 employees more time to file RTI returns will come to an end.