In October 2004 the Government introduced compulsory procedures for employers to follow when contemplating dismissing an employee or dealing with complaints raised by employees. The procedures are backed up by penalties for default, including findings of automatically unfair dismissals and increases in awards of up to 50%. The complex nature of the procedures and the consequent wide-spread confusion amongst employers and employees alike led to calls for the procedures to be abolished.

We understand that the Government is gearing up for a “u-turn” on this controversial legislation and that through its Employment Bill the statutory procedures will be repealed. It is expected that the new legislation will take effect, following consultation, in October this year. Watch this space......

ACAS to extend conciliation

..... Another “u-turn” will impact of the way in which Employment Tribunal proceedings are dealt with. ACAS, who provide arbitration and conciliation services for employment matters, are to extend conciliation services beyond the current fixed periods.

Since October 2004, ACAS have refused to conciliate after the expiry of the fixed conciliation periods which were 13 weeks for claims such as unfair dismissal and just 7 weeks for simple breach of contract type claims. This has caused considerable problems to employees and employers who wish to settle claims after the expiry of the relevant period.

ACAS have announced that it will now exercise its discretion to offer conciliation services in all cases right up to the Tribunal Hearing, good news for those who prefer to settle their cases at the door of the Tribunal.

“Too Young” workers subject to age related discrimination

We have recently seen a spate of cases involving younger employees being discriminated against on the grounds of their age.

In Wilkinson v Springwell Engineering Limited, the Employment Tribunal unsurprisingly found in the favour of 18 year old Miss Wilkinson who was dismissed having been told by her employers that she was “too young” for the job and that the employer needed an older employee to fulfil her duties. The Tribunal said the employer had relied on a "stereotypical assumption that capability equals experience and experience equals older age...”

Miss Wilkinson was awarded over £16,000, of which £5,000 was injury to feelings.

In an earlier case, Morgan v Eight Members Club, a 20 year old woman who was dismissed from her job in a members club for not being old enough to deal with its members, was found to be both unfairly dismissed and discriminated against on the grounds of her age.

Employers are warned that the age discrimination legislation applies equally to both younger and older workers, and caution must be taken when using any language which implies any age bias.

Following the annual amendment, the following employment rates/ awards are now in place:

• Maximum compensatory award for unfair dismissal- £63,000 (from £60,600)
• Maximum statutory redundancy payment/ basic award- £9,900 (from £9,300)
• Week’s pay for statutory redundancy- £330 (from £310)
• Maximum award for failing to provide written particulars of employment- £1,320 (from £1,240)
• Minimum Guarantee Payment- £20.40 per day
• Statutory Sick Pay- £75.40 per week
• Statutory Maternity Pay- £117.18 per week (first six weeks are 90% of normal pay)
• Statutory Paternity Pay and Adoption Pay- £117.18 per week