On 29 July 2013 wide reaching employment law changes will come into force. The key changes are outlined below:

1. New Employment Tribunal Fees to be introduced

Claimants will be liable to pay an issue fee when they lodge their claim and later a hearing fee. Fees will vary depending on whether claims are considered type "A" or type "B". For further details on this please see our article 'Show me the money!! Tribunal fees to be implemented from 29 July 2013'.

2. Compromise Agreements to be renamed Settlement Agreements

You should ensure any precedent 'compromise agreement' is renamed accordingly and get used to using the new terminology.

3. Pre-termination negotiations are to become inadmissible in unfair dismissal proceedings

Employers are to be given greater freedom to offer settlement agreements where there is no on-going litigation. The evidence of any such offer or discussion will be inadmissible in the Employment Tribunal in claims for ordinary unfair dismissal, unless there has been "improper behaviour". There are certain rules that need to be complied with, see our article 'Now settle down...Pre-termination negotiations to be inadmissible in unfair dismissal claims'.

4. New Employment Tribunal rules

The Employment Tribunal has been given new strike-out powers to ensure that weak cases are thrown out at the earliest possible opportunity and, where applicable, Employment Tribunals must encourage parties to use alternative dispute resolution.

In addition, a new procedure has been introduced to reduce the overall number of hearings and lead to a quicker disposal of cases by combining pre-hearing reviews and case management discussions into one new 'preliminary hearing'.

5. New cap introduced on the compensatory award for unfair dismissal

For dismissals after 29 July 2013, the new cap will be either £74,200 (the current maximum) or a maximum of one year's pay whichever is lower. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.