Employment update

Date Added: 19 December 2011

New statutory payment rates for 2012 announced

On 12 December 2011, Steve Webb, the Minister of State, Department for Work and Pensions, announced the proposed rates of statutory benefits, which will apply from early April 2012.

• The standard rates for statutory maternity pay, statutory paternity pay and statutory adoption pay will increase from £128.73 to £135.45. The weekly earnings threshold for these payments will rise from £102 to £107.
• Statutory sick pay will increase from £81.60 to £85.85, with the weekly earnings threshold also rising from £102 to £107.
• Maternity allowance will increase from £124.88 to £135.45, with the earnings threshold remaining at £30.

Charging fees in employment tribunals and the EAT

On 14 December 2011, the Ministry of Justice launched its consultation, Charging Fees in Employment Tribunals and the Employment Appeal Tribunal, seeking views on two significantly different fee charging structures which might be adopted for charging fees in the employment tribunal. Only one scheme is proposed for charging fees in the EAT.

Option 1 proposes an issue fee and a hearing fee, the amount of which would depend on the nature of the claim and whether it was an individual claim or a multiple claim. For example, in an individual unfair dismissal claim, the claimant would have to pay an issue fee of £200 and a hearing fee of £1,000. Option 2 proposes only an issue fee, the amount of which will depend on what the claimant states their claim to be worth: an individual unfair dismissal worth less than £30,000 would cost £500 to issue, one worth more would cost £1,750. Both options propose a range of application-specific fees and adoption of HM Courts & Tribunals fee remission scheme for those who cannot afford the fees. It is suggested that option 1 could be introduced in 2013 while it would take until 2014 for option 2 to be implemented in full.

The consultation closes on 6 March 2012.

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