In part 1 of a two-part series, I identify the first 5 of my top 10 changes in employment law for 2013. An interesting development this week was the House of Lords’ vote against the implementation of number 4 (employee-shareholder status), which leaves the future of the reform in considerable doubt.

Part 2 of my top 10 list will follow next week.

  1. Increase to parental leave entitlement
  • Changes took effect: 8 March 2013
  • Increased Parental Leave entitlement from 13 to 18 weeks in respect of any individual child (previously 18 weeks only available to parent of a child entitled to disability living allowance)
  1. Reduction in collective consultation period and change for fixed term employees
  • Changes to take effect: 6 April 2013
  • 90 day consultation period to reduce to 45 days for redundancies involving 100 or more employees
  • Expiry and non-renewal of fixed term contracts to be excluded from scope of collective consultation obligations (however termination by reason of redundancy before ordinary expiry will still count)
  1. Changes to PAYE reporting
  • Changes to take effect: 6 April 2013
  • Employers to report PAYE information in real time (“RTI”)
  • Requires electronic submission of PAYE information every time an employee is paid
  1. Employee-shareholder status
  • Changes to take effect: Expected (not confirmed) 1 September 2013
  • Employees can opt to forego certain employment rights (e.g. unfair dismissal, statutory redundancy pay) in return for between £2,000 and £50,000 worth of shares, with gains made on such shares to be exempt from CGT
  1. Settlement Agreements
  • Changes to take effect: Expected Summer 2013
  • Compromise Agreements to be renamed Settlement Agreements
  • ACAS to publish Statutory Code of Practice on how to make an offer of settlement