Employment Law - Changes To Come For 2011

Date Added: 11 January 2011

Compensation limit increased?

Tribunal compensation limits will increase on 1st February 2011. The maximum compensatory award for unfair dismissal will rise from £65,300.00 to £68,400.00. Additionally, the maximum amount of a week’s pay, used to calculate statutory redundancy pay (along with other things), will rise from £380.00 to £400.00. The new limits will apply where the effective date of termination is on or after 1st February 2011.

New statutory payment rates for 2011

The proposed rates of statutory benefits which are expected to apply from 11th April 2011 are

• The standard rates for Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay will increase from £124.88 to £128.73. The weekly earnings threshold for these payments will rise from £97.00 to £102.00.
• Statutory Sick Pay will increase from £79.15 to £81.60, with the weekly earnings threshold also rising from £97.00 to £102.00.
• Maternity allowance will increase from £124.88 to £128.73, with the earnings threshold remaining at £30.00.

Flexible working time

The Government has announced that the right to request flexible working will be extended to parents with children under the age of 18 from April 2011. This extends the right to request flexible working time already granted to parents of children under the age of 17, or under the age of 18 if the child is disabled, and to employees who care for adults aged 18 or over.

Additional statutory paternity leave
The introduction of the right to additional paternity leave and additional paternity pay will come into force and affect parents whose babies are due on or after 3rd April 2011 or who, in relation to adoption, are notified of having been matched on or after 3rd April 2011. The right will only arise where the employee’s spouse, civil partner or partner has gone back to work with some of their statutory maternity/adoption leave untaken.

Other key legislative developments expected in April 2011 include the commencement of the Bribery Act 2010 and the transitional provisions to phase out the default retirement age.

This is a summary of the key employment law changes set to take place in 2011.

Please contact the Employment Team for assistance with any specific issues you may have.

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