Employment Law update 2012

Employment Law update 2012


An increase on the Tribunal Awards came into effect on 1 February 2012.

A weeks’ pay is increased to £430; previously £400

The maximum compensatory award for unfair dismissal increased to £72,300; previously £68,400

Guarantee pay increased to £23.50 per day; previously £22.20.


The standard rate of statutory maternity, paternity and adoption pay will increase to £135.45 per week from 1 April 2012 (currently £128.73).

The weekly earnings threshold for the SMP, SPP and SAP payments will also increase to £107 (currently £102).

The standard rate of statutory sick pay increases to £85.85 per week from 6 April 2012 (currently £81.60).

The qualifying period for gaining employment protection rights against unfair dismissal increases from one year to two years.


There will be an additional bank holiday on Tuesday 5 June to mark The Queen’s Diamond Jubilee. The late May bank holiday will be moved to Monday 4 June to create a long weekend.

From October:

Pensions auto-enrolment – employers will be required to automatically enrol all eligible employees who are not already part of a workplace pension scheme into a qualifying workplace pension or the National Employment Savings Trust pension scheme. They are also required to make minimum contributions.

National minimum wage – New hourly pay rates from 1 October 2012:

–   Increases from £6.08 for 21 years and older to £6.19
–   £4.98 for 18-20 years (no increase)
–   £3.68 for 16-17 years (no increase)
–   Increases from £2.60 for Apprentices to £2.65

Useful links:
UKnational statistics
HM Revenue & Customs
Department forBusiness, Innovation and Skills (BIS)