I know the Government is proposing changes to employment law in relation to unfair dismissal cases. Can you explain what they would mean to me as a business person?
The Government is selling the proposed changes as a boost to businesses suggesting they offer an alternative to employment tribunal hearings.
Vince Cable, the Minister for Business Innovation and Skills, has outlined suggestions which cover a significant number of areas of employment law – find the consultation paper on the department's website www.bis.gov.uk.
Employment tribunal hearings can prove costly and lengthy so, of course, businesses are keen to avoid them. The Government is suggesting the changes would encourage businesses to recruit staff without fear of facing a claim in the event of an employee being dismissed in the first two years.
The major proposed changes are:
- From April the qualifying period of continuous employment would increase from one to two years for employees wishing to bring unfair dismissal claims (except in special cases, for instance pregnancy-related dismissals).
- The possibility of employers who lose unfair dismissal claims being ordered to pay a penalty to the Treasury and compensation to the successful claimant.
- The requirement of the claimant to pay a fee, on a sliding scale depending on the value of the claim, upon commencement of their claim.
- The requirement of both parties to go through mediation via ACAS before the case proceeds to a hearing.
- The simplification of compromise agreements to facilitate early settlement of cases.
As I said, the aim is to encourage both parties to resolve disputes more quickly and efficiently. Whether that will happen or any legislative changes will simply reduce the cost to the State of administering the tribunal system is something only time will tell.
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