For example, the Enterprise and Regulatory Reform Act 2013 ("ERRA") will give shareholders of listed companies more control over directors' pay. These companies will be prevented from making any remuneration payment (including a termination payment) without shareholder scrutiny. ERRA will also amend existing whistleblowing legislation to ensure that all protected disclosures are in the public interest, which will prevent whistleblowing claims based solely upon the breach of an employment contract.
A controversial change coming into force in September 2013 is the ability of employees to sacrifice some of their statutory employment rights in exchange for shares in their employer company valued at between £2,000 and £50,000. For example, if an employee elects to accept shares, he or she will waive any right to a statutory redundancy payment and the right to bring an unfair dismissal case.
There has also been a recent change in the rules governing collective consultation during a redundancy process. Now, if an employer proposes to make 100 or more employees redundant within a 90-day period, the minimum consultation period that must be undertaken with the affected employees before the first redundancy can take effect is 45 days. Previously, the time period was 90 days.