UK: Legislative proposals

Call for evidence on dismissal process

BIS has issued a call for evidence seeking views on (i) whether the Acas Code of Practice on Discipline and Grievance could be made more accessible and easier to use by smaller businesses (with a particular focus on whether the same principles should apply to poor performance as to misconduct), and (ii) the concept of allowing micro-employers (with fewer than ten staff) to carry out compensated no-fault dismissals as an alternative to a fair dismissal.  The call for evidence closes on 8 June 2012.

Progress on Employment Law Review

The Government has published an annual report on the progress of the Employment Law Review.  It does not contain any new proposals but provides a helpful list of what is currently under review.

Board gender diversity

The European Commission is consulting on possible action at EU level, including legislative measures, to redress the continuing gender imbalance on corporate boards in Europe. The consultation is open until 28 May 2012, after which the Commission will take a decision on further action later in 2012.

Meanwhile in the UK, Lord Davies's first annual progress report following his independent review of women on boards has been published. It shows that last year saw the largest ever annual increase in the number of women on boards, with women now accounting for 15.6% of all FTSE 100 directorships, up from 12.5%. The report recommends that FTSE 100 boards should aim for a minimum of 25% female representation by 2015.

Executive remuneration

The Government has published a consultation paper on its proposals to increase shareholder voting rights in relation to executive remuneration at UK incorporated listed companies, including four key measures:

• an annual binding vote on future remuneration policy;
• the possibility of requiring a higher than 50% majority to approve future remuneration policy;
• an annual advisory vote on the implementation of the remuneration policy over the previous year; and
• a binding vote on exit payments of more than one year's base salary.

The consultation paper closes for comment on 27 April 2012. The Government expects legislation on the new shareholder voting rights to come into force in spring 2013, with the provisions applying to reporting years ending after 1 October 2013.  Our briefing considering the proposals is available here.