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Employment Law Changes in Enterprise

Planned employment law provisions of the Enterprise and Regulatory Reform 2013 were introduced on 25 June 2013.

The measures were implemented to further promote a dynamic economy by encouraging innovation and enterprise, while protecting the best interests of a business and its employees. Here is some of the key information that employers and business owners need to know regarding the recent rule changes.

Whistleblowing

A loophole in whistleblowing protections has been closed. Individuals could previously bring a whistleblowing claim regarding a private matter, including issues related to employment contract breaches. However, protection will now only be granted when an employee is blowing the whistle on a matter for public interest.

Following the rule change, whistleblowing protection will also be given to individuals who choose to make a disclosure in bad faith. However in these circumstances, the motive will be taken into consideration during the assessment of the compensation and could result in it being cut by 25%.

Employers are now also legally responsible for introducing a policy to protect whistleblowers from bullying and harassment, which must be shared with the entire workplace.

Unfair dismissal

There has previously been a single limit on unfair dismissal compensatory awards, standing at just over £75,000.

A cap has now been introduced on the level of compensation an individual can be awarded during an unfair dismissal claim. A person will either receive a maximum of the current statutory limit of around £75,000 or a maximum of one year’s earnings, which will be 52 weeks gross pay.

The two year qualifying period for unfair dismissal claims has also been revoked for dismissals that are caused by or related to the political opinions or affiliation of an individual.

Equality at work

Employers are now no longer responsible for the harassment of their staff members by parties outside of their organisation or who they have no control over.

The Reform Act has also included a new power into the Equality Act 2010, where Employment Tribunals can instruct an employer to perform a pay audit if they have been found to have either breached the equal pay law or discriminated against a certain gender.

Furthermore, “Caste” is set to be included within the definition of “race” within the Equality Act 2010, where the legislation will commence following a public consultation.

This was posted in Bdaily's Members' News section by Linder Myers .