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Happy New Year Date: 09/01/2008

In this EarlyWarning we highlight some of the key legislative changes to be on the lookout for in the first half of 2008.

1 February 2008 – New rates and limits

 As of 1 February 2008 the following new statutory rates and limits will be in force:
  • Limit on a week’s gross pay (for calculating certain statutory awards) - £330 (previously £310);
  • Maximum basic award for unfair dismissal/statutory redundancy payment  - £9,900 (previously £9,300);
  • Maximum compensatory award for unfair dismissal - £63,000 (previously £60,600);
  • Maximum award for failure to give statement of employment particulars - £1,320 (previously £1,240).
These new limits apply where the “appropriate date” falls on or after 1 February 2008.  The appropriate date is determined according to the type of claim brought, for example, in unfair dismissal, and most redundancy, claims it will be the effective date of termination.

6 April 2008 – Information and Consultation; Corporate Manslaughter;SMP and SSP

The Information and Consultation of Employees Regulations 2004 set out a regime whereby UK employers may, and in some cases must, put in place information and consultation agreements governing how they will consult staff on economic and employment-related matters. When they came into force in April 2005, the Regulations applied only to employers with more than 150 employees.  Employers with more than 100 employees were brought within the scope of the Regulations from April 2007 and, from 6 April 2008, the Regulations will apply to employers with at least 50 employees.

 

Similarly, from 6 April 2008, employers with more than 50 employees will be required to consult before changing either occupational or personal pension schemes.

 

The Corporate Manslaughter and Corporate Homicide Act 2007 comes into force on 6 April 2008, creating a new offence of corporate manslaughter that replaces the existing common law offence of manslaughter by gross negligence that can be committed by companies and other organisations.  The new offence is committed if the way in which an organisation (including companies, partnerships, trade unions and employers associations) manages or organises its activities causes a person’s death and amounts to a gross breach of a relevant duty of care owed to that person.


Finally,
HMRC has also published the following changes to the rates of statutory benefits that are intended to apply from 6 April 2008 (although these are still subject to Parliamentary Approval):

  • Standard rate of statutory maternity, paternity and adoption pay - £117.18 per week (currently £112.75 per week);
  • Standard rate of statutory sick pay - £75.40 per week (currently £72.25 per week).

Summer 2008 – Employment Bill

Published on 6 December 2007, the Employment Bill is expected to receive Royal Assent by summer 2008, although it is unlikely to come into force before April 2009.  Key changes proposed by the Bill include repealing the statutory dismissal and grievance procedures, and giving Tribunals discretion to increase awards of damages by up to 25% if an employer unreasonably fails to comply with a relevant Code of Practice.


Kiersten Lucas
311


Simkins' early warning bulletins are for general guidance only. Legal advice should be sought before taking action in relation to specific matters. Where reference is made to Court decisions facts referred to are those reported as found by the Court. Please note that past bulletins included in the Archive have not been updated by any subsequent changes in statute or case law.

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