INFORMATION
UPDATE

EMPLOYMENT LAW CHANGES – APRIL 2013

A number of changes have come into effect this month and the details are summarised below:

Statutory Rate Changes: 

Redundancy Collective Consultation Changes:

The minimum period of collective consultation required in a redundancy situation has been reduced when 100 or more are proposed to be redundant.  The minimum period of consultation period depends upon the number of employees at one establishment proposed to be dismissed as redundant including redeployments (where there is no contractual mobility clause) and volunteers (providing they are volunteering for dismissal on grounds of redundancy).

Consultation timescales as set by legislation are as follows:

You have a legal obligation to notify the appropriate Secretary of State if you propose a redundancy exercise involving 20 or more employees. You must make a written submission and a special form, HR1 is provided by the government for this purpose. If you propose to make at least 20 but less than 100 people redundant during a 90 day period, you must submit the HR1 form 30 days before the first dismissal takes place. If your proposal involves 100 or more employees, then you must submit it 45 days (not 90 days as previously) before the first dismissal.  If an employer fails to follow these notification procedures then the Secretary of State may take criminal proceedings that could lead to a fine of up to £5,000.

National Minimum Wage Rate Increase

As announced yesterday, the following changes will apply with effect from 1st October 2013:

1. The rate for workers aged 21 and over will rise from £6.19 to £6.31 per hour;
2. The rate for workers aged between 18 and 20 will rise from £4.98 to £5.03 per hour;
3. The training rate will rise from £4.98 to £5.03 per hour;
4. The rate for workers aged under 18 but above the compulsory school age (who are not apprentices) will rise from £3.68 to £3.72 per hour;
5. The rate for apprentices will rise from £2.65 to £2.68 per hour; and
6. The accommodation offset will rise from £4.82 to £4.91 per day.