Employment Law Update – 2015
New Statutory Figures
The annual increase in compensation limits has been announced. The new limits are applicable where the event that gives rise to the award or payment occurs on or after 6th April 2015 and are: £475.00 – the maximum amount of a week’s pay for calculating statutory redundancy pay and the basic award; (up from £464.00)
£14,250.00 – the maximum statutory redundancy payment or basic award, i.e. 30 weeks; and
£78,335.00 – the maximum compensatory award which can be made for unfair dismissal (up from £76,574.00) or one year’s gross pay whichever is the lower
These increases mean that the maximum total unfair dismissal award is now £92,585.00, although uplifts can add a further 25%.
It remains very important to follow good practice in your HR procedures; carefully consider all dismissals, and ensure that the handling of appeals is conducted as thoroughly as possible. It is also important to remember that there is no cap at all on the awards that can be made in many cases, including discrimination claims.
Employees may be entitled to receive guarantee payments for up to five days of lay-off in any three-month period. The maximum amount of such a statutory guarantee payment for any one day will be £26.00 (£25.00 before 6th April 2015).
From 5th April 2015
Statutory Adoption, Maternity and Paternity Pay, and Maternity Allowance, will all rise from £138.18 to £139.58 per week. This will also be the new rate for Shared Parental Leave Pay.
Statutory Sick Pay (SSP) will also increase from £87.55 to £88.45 per week.
The Lower Earning Limit (LEL) will increase from £111.00 to £112.00 per week, i.e. £5,824.00 per annum.
Other Changes for 2015
The General Election is only months away and the outcome will determine the future direction of employment law, although employment law is unlikely to be a high priority for any Government.
The most significant change in 2015 will be the introduction of the new scheme of Shared Parental Leave from April.
While not strictly a legal development, the new Fit for Work service is being rolled out in early 2015, providing health assessments for employees who are off sick for more than four weeks. This will be the focus of our next Newsletter.
There are various views on other bits of proposed legislation, e.g. restrictions on zero hour contracts but little certainty about whether/when they will become law.
One likely change is that, from 1st July, the two-year cap on backdated holiday pay claims raised in the Employment Tribunal will come into force. This cap will apply only to claims raised on or after the 1st July 2015.
National Minimum Wage rates are likely to increase from 1st October 2015, depending on the recommendations of the Low Pay Commission which are due in the spring. The Government asked the Commission to carefully consider apprenticeship pay.
Our Consultants would be pleased to answer questions on any of the above or you can find much of the data by clicking on Frequently Asked Questions.
