Update on Employment Law

Apr 02, 2013

Changes to Employment Law

Here is a brief summary of some of the Employment Law changes in 2013 so far:

  • From 1st February the limit on compensatory awards for unfair dismissal has increased by £1900 to £74,000
  • From 8th March the employee right to take parental leave is increased so that either parent can take up to 18 weeks unpaid leave in the first five years of the child's life.
  • The old Criminal Records Bureau (CRB) checks carried out by employers when recruiting personnel to work with vulnerable people or children are now known as the Disclosure and Barring Service (DBS) and can be moved between employers so that a new check is not now required when a person changes employer.


Further employment changes in the pipeline:

  • 6th April - Standard rates of maternity, paternity and adoption pay increases to £136.78 per week
  • 6th April - Standard rate of sick pay  increases to £86.70 per week
  • 6th April  - Real time information for payroll reporting begins.  Under new arrangements for PAYE employers will have to report deductions to HMRC at the time of, or prior to, paying staff rather than once a year as previously.

However, HMRC have recognised that some small employers may pay staff on a weekly basis but only process a payroll run on a monthly basis. In recognition of this a concession has been given to employers with less than 50 employees. This concession is currently from 6th April to 5th October 2013 and will allow employers to send the deduction information to HMRC at the end of their  payroll run provided this is no later than the 5th of the following month. The concession is likely to be reviewed in the summer and HMRC say they are continuing to assess the impact of real time reporting on SMEs.