What do we already know?
We updated you in our June Newsflash Queen’s speech that the Government had announced plans to implement the Enterprise Bill which would introduce:
The Enterprise Bill has had its first reading in the House of Lords on 16 September 2015 and the Government has also published a factsheet, available here, summarising the measures in the Enterprise Bill.
The key proposals relevant to employment practitioners are:
The reform with the most impact is likely the cap on exit payments which could potentially include redundancy payments, pay in lieu of notice, sums paid to settle potential Tribunal claims and payments involved in providing unreduced benefits under pension schemes. However, we will have to wait for further details on this until separate regulations are published after Parliamentary approval of the Bill. These reforms are most likely to take effect in October 2016 or later.