Monthly Archives: January 2013

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Legal Tips for Employers in the Coming Year

Small business owners need to be aware of any changes to employment laws. The ramifications for breaking any of these laws can be serious, even if the employer wasn’t aware of the change ahead of time.

These laws are changing quickly so employers will need to be diligent about keeping up with them. A number of new laws are already being introduced in 2013 that you will need to be aware of.

What Changes Should We Expect in 2013?

The government is passing several new laws that will extend more rights to employees throughout the United Kingdom. Here are some of the biggest changes that you will need to be aware of.

Shareholder Contracts with Employees

Many employers have shareholder contracts with their employees. A new law will require these contracts to be structured differently two months from now. Shareholder contracts will give employees the right to demand training when needed and file a complaint when they believe they were unfairly terminated.

Addition of Tribunal Fees

The government has grown concerned that too many employees have tried to manipulate the complaint system and file compensation claims against their employers. This new system will charge a fee of 250 pounds to discourage employees from trying to exploit their employers.

Limits of Compensation on Any Claims

More jaded employees have filed unjust termination claims against their employers. The government wants to ensure employees who have a legitimate case will still be able to seek compensation. However, they are also going to place some limitations on the amount that they can claim. There are two new criteria that set the limit of the amount an employee can claim:

  • The employee cannot be awarded more than  £74,200
  • The employee also will not be awarded more than a year’s salary

Wrongful termination claims can be financially devastating to small and medium sized businesses, so these new standards should limit the financial damages they will face.

Be Aware of these Laws in the Coming Year

Employment laws change drastically throughout the year. You will want to make sure that you understand the changes that will go into effect in 2013 and adopt to them as best as possible.