For salary-sacrifice agreements made on or after 28 July 2011, output tax is due on the amount of the employee's salary waived in return for taxable benefits. For salary-sacrifice agreements made before 28 July 2011 and continuing after 31 December 2011, output tax is due only on the occurrence of a specified event.

Awards Limits adjusted

The Employment Rights (Increase of Limits) Order 2011 (SI 2011/3006) increases the limits on certain employment tribunal awards and other amounts payable under employment legislation. The maximum unfair dismissal compensatory award rises from £68,400 to £72,300 and the maximum amount of a week's pay for the purpose of calculating a statutory redundancy payment and the basic and additional awards for unfair dismissal increases from £400 to £430. The rise in the limits applies where the event that gives rise to the award or payment occurs on or after 1 February 2012. The Order can be viewed on the UK legislation website.

The Parental Leave Directive (2010/18/EC) repeals and replaces the Parental Leave Directive (96/34/EC). The permitted period of parental leave following the birth or adoption of a child increases from three to four months, and at least one of the four months will not be transferable between parents. Member states have until 8 March 2012 to bring this into force.

The qualifying period for employees to bring a claim of unfair dismissal increases from one year to two years.

The maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, increases from £500 to £1,000. The maximum amount of a costs order, which a tribunal may award in favour of a legally represented party, increases from £10,000 to £20,000. Other changes are made to employment tribunal procedure, including changes to witness statements, which are no longer read aloud, and are instead taken "as read", unless the tribunal directs otherwise. Tribunals have the power to direct that the parties to a dispute are responsible for paying witnesses' expenses and that the party who loses the case should reimburse the successful party for any such costs already paid out. Employment judges will hear unfair dismissal cases alone in the employment tribunal, unless they direct otherwise, and judges will hear all cases alone in the Employment Appeal Tribunal, unless they direct otherwise.

The Directive on self-employed workers and assisting spouses gives self-employed women, and those who assist their self-employed spouse or partner, the right to maternity leave and allowance for 14 weeks. Member states have until 5 August 2012 to implement the provisions. The Directive is unlikely to have much effect in the UK because self-employed women are entitled to claim 39 weeks' maternity allowance.

Employees who wish to bring an employment tribunal claim against their employer are required to pay a fee. The fee will be repaid to the employee only if he or she is successful with his or her claim. George Osborne made the announcement at the Conservative Party Conference and his speech can be viewed on the Conservative Party website.

All employment tribunal claims referred to Acas - To be confirmed

Potential claimants are required to lodge details of their proposed employment tribunal claim with Acas in the first instance. Acas will offer the parties the opportunity to engage in conciliation. Where the parties refuse to engage in conciliation, or where conciliation is attempted but is unsuccessful, the claim will proceed.

Employment tribunals have the power to levy a financial penalty against employers that are in breach of employment rights. The amount of the penalty will be based on the amount of the award that the tribunal makes, with a minimum threshold of £100 and an upper ceiling of £5,000. Employers will qualify for a reduction if they pay the penalty within 21 days.

The Public Interest Disclosure Act 1998 is amended. Employees can no longer make a protected disclosure about a breach of their employment contract.

The Agricultural Wages Board, an independent body that determines the minimum wage for workers employed in agriculture in England and Wales and has discretionary powers to regulate other terms and conditions of employment, is abolished. Agricultural workers are brought within the scope of the national minimum wage.