12 January 2012

Employment Law Set for Major Reform

 

The Business Secretary, Vince Cable, has spoken out in support of plans for major reform of employment law.

The package of measures, announced on 23 November, include an overhaul of the employment tribunal system, which is expected to save employers some £40 million a year. There will also be a call for evidence on whether the 90-day minimum consultation period for collective redundancies should be reduced.

Vince Cable considers the reforms to be focused on protecting the rights of employees but, at the same time, making it easier for businesses to take on staff and improving the process for when staff have to be let go. We know that disputes at work cost time and money, reduce productivity and can distract employers from the day-to-day running of their business.

The announcement includes a call for evidence on proposals to introduce compensated, no fault dismissal for firms with fewer than ten employees and on ways to slim down and simplify existing dismissal processes.

In December, the Ministry of Justice issued a consultation document on two options for introducing fees for anyone wishing to bring a claim in the employment tribunal. The first option is for a system that involves paying an initial fee to lodge a claim, with a second fee to take that claim to hearing. The second proposes introducing a £30,000 threshold, so those seeking an award above this level will pay more to bring a claim.

For employment issues please contact Carol Davies.