ENDING THE EMPLOYMENT RELATIONSHIP – CONSULTATION OUTCOME
18 January 2013
The Department for Business Innovation & Skills (BIS) have today published their response to a consultation held during 2012, Ending the Employment Relationship.
The Department for Business Innovation & Skills (BIS) have today published their response to a consultation carried out last year Ending the Employment Relationship which closed on 23 November 2012. The consultation was seeking views on two main issues, which supplemented legislative changes which are currently before Parliament within the Enterprise and Regulatory Reform (ERR) Bill. Namely: How to support changes that are aimed at facilitating a consensual end to an employment relationship by use of a settlement agreement; whether, in unfair dismissal awards, the compensatory cap is appropriate.
The proposals included within the response are for the government to introduce:
A 12 month pay cap on the compensatory award for unfair dismissal
Template letters which will be made available to encourage use of the new settlement agreements along with a statutory code of practice which will include an explanation of improper behaviour Guidance which will outline the issues to be considered when deciding upon and negotiating the level of financial settlement and to this end government have asked Acas to include template letters in a Statutory code. The Acas code will be the subject of future consultation.
Jo Swinson MP, Minister for Employment Relations and Consumer Affairs has said:
“We are committed to finding ways to support both businesses and employees when a working relationship breaks down. The measures I have announced today will do just that.”
“Central to this is promoting the benefits of good communication, better management, and early dispute resolution, as this can lead to the best outcomes for everyone. We are working closely with Acas to get the rules and procedures for Early Conciliation right, and welcome the views of interested parties in our consultation.” “Settlement agreements can be a helpful tool and work in the interest of both employer and employee. Creating a code and simple guidance will mean that these arrangements are more readily available to those in small businesses, not just large corporations.” “Employment Tribunals are costly for everyone, in terms of money but also time and stress. We need to tackle unrealistic expectations about the levels of compensation awards, especially when only 1 in 350 people who make a claim for unfair dismissal receive an award of more than their own salary, and the average award is less than £5,000. Tribunals should be the last resort not the first port of call.”
EARLY CONCILIATION – CONSULTATION
22 January 2013
The Department for Business, Innovation and Skills has launched a consultation which will close on 15 February 2013.
CIPP Policy News Journal
12/04/2013, Page 327 of 362
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