Yesterday the Government confirmed that the cap on the compensatory award for successful unfair dismissal claims will be the lower of one year’s gross pay or £74,200 with effect from 29 July 2013.
This is in addition to a number of other changes to the laws which will come into effect on the same date:
- The introduction of “settlement agreements”. These effectively replace the currently used compromise agreement.
- The implementation of what have previously been referred to as “protected conversations”, whereby an offer of a settlement agreement will be inadmissible as evidence in a subsequent unfair dismissal claim.
- The above two changes will be accompanied by a Statutory Code of Practice and substantive guidance to allow for clarity and certainty with the negotiation of settlements. This will include advice on negotiating settlement, template letters and model agreements.
- The introduction of new Employment Tribunal rules of practice and procedure.
- The introduction of fees in the Employment Tribunal. From this date all individuals who wish to present a claim in the Employment Tribunal will need to pay a fee or provide an application for remission of that fee under the HM Courts & Tribunals Service remissions scheme. Depending on the type of claim the fee to present a claim will be either £160 or £250. A further fee of £230 or £1,200 will be payable when the matter is listed for hearing.
To discuss these changes, or any other employment law issues which may affect you or your business get in touch at contact@integralegal.co.uk