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February 2002 Welcome to the first edition of our newsletter. We will be producing The HR News initially every two months and aim to provide you with up to date information on Employment Law and HR practices. We will be more than delighted to receive your feedback and any relevant questions on HR practices or employment law. If you do not wish to receive future copies you may do so by clicking here.
In this issue we bring news of further bureaucracy destined to make employers lives even more miserables.
Disability Discrimination (Amendment) Bill
Employment Tribunal Awards Increase
Record sex discrimination pay out
The draft Disability Discrimination (Amendment) Bill received its first reading in the House of Lords on 9 January 2002. Clearly at the present time, the precise content of any resulting legislation cannot be guaranteed, but currently some interesting points in the Bill are as follows: - HIV and cancer which is likely to require substantial treatment are to be deemed to be capable of amounting to a disability
- There will be no exemption for small employers. Currently the Disability Discrimination Act does not apply to employers with fewer than fifteen employees
- Employment Tribunals will have the power to order reinstatement or re-engagement of employees who claim disability discrimination.
The new limits will apply where the event giving rise to the right to compensation (which in cases of unfair dismissal will be the effective date of termination) took place on or after 1 February 2002, and the main increases are summarised below. - Unfair dismissal basic award
- Limit on a week's pay from £240 to £250. New maximum is £7,500
- Unfair dismissal compensatory award from £51,700 to £52,600
- Statutory redundancy payment
- Limit on a week's pay from £240 to £250
Julie Bower was awarded a £1.5 million compensation pay-out against Schroder Securities in a sexual discrimination case. In April 2001, an employment tribunal found that the Mrs. Bower was unfairly dismissed and sexually discriminated against. The tribunal found that Mrs. Bower was paid an 'insultingly' low bonus of £25,000 in 1999, while a male colleague was given £650,000 for doing the same work. When her concerns regarding equal pay were not addressed Mrs. Bower, who was struggling against cancer at the time, was made to leave her £120,000 a year job. The compensation takes account of lost bonuses, pension contributions and a car allowance that Bower could have expected to the present day.
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