Update on the Enterprise and Regulatory Reform Bill

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Update on Enterprise and Regulatory Reform Bill

The second reading of the Enterprise and Regulatory Reform Bill was heard in the House of Commons yesterday. Please see previous article for details of the original Bill https://www.astonssolicitors.co.uk/numbersquash/the-enterprise-and-regulatory-reform-bill/983/

The main points of note are:-

1. The government will not be implementing Adrian Beecroft’s ‘compensated no fault dismissal’ proposal. To view the full debate on this issue follow the link column 64-65

2. Legislation to bring in “settlement agreements” would be introduced at the committee stage on 19th July 2012. Under the proposed legislation, employers would be able to make a settlement offer without it being brought up in subsequent employment tribunal proceedings. This legislation would go further than the current ‘without prejudice’ rule as no prior dispute would be required to bring about an offer of settlement on a without prejudice basis.

3. Vince Cable (Secretary of State for Business, Innovation and Skills) defended objections to the power in the Bill to reduce the compensatory award to the lower figure of the national median earnings (£28,000) or of an employee’s annual earnings. The current rate for compensatory awards is £72,300.00.

Written by

Edward Aston