Legislation Update: Enterprise and Regulatory Reform Act

Enterprise and Regulatory Reform Act 2013

On 25 June 2013 the following will come into force:

  • The new tribunal procedural rules
  • Changes to whistleblowing laws (introducing a public interest element, removing the requirement that the disclosure must be made in good faith, imposing vicarious liability on employers for detriments by employees on other workers)
  • Removing the 2-year qualifying period for unfair dismissal where the main reason for dismissal is the employee's political opinions or affiliations.

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Employee Shareholders
Growth and Infrastructure Bill

Employee Shareholders is now set to become law with an expected implementation date of autumn 2013.

A further concession written into the legislation is that an agreement that someone shall become an employee shareholder is invalid unless, prior to entering into the contract, the individual has received advice from a relevant independent advisor such as a lawyer, CAB, law centre, union or other informed source). Further, the employer has to pay the reasonable costs of that advice - whether or not the employee then accepts the role - if they would otherwise have been payable by the employee.

If the employee does not receive independent advice before agreeing to become an employee shareholder, then he/she will be an ordinary employee.


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