November 28, 2011
UK employment law looks set for an overhaul as the government confirmed this week that key areas of legislation, such as employee dismissal and dispute resolving, will change.
Findings on the Red Tape Challenge website, set-up to encourage discussion about UK laws, have pinpointed several areas needing major overhaul. The government says the drastic move will save the economy and businesses millions in claims and unnecessary bureaucracy.
Some of those changes announced include those made to the dismissal system, which could result in businesses with fewer than 10 employees being free to use the "compensated no-fault dismissal" system. This would allow employers to sack underperforming staff without reason in certain circumstances.
Changes will also be made to the employment tribunal system, and according to Business Secretary Vince Cable, the Ministry of Justice will publish a consultation on the introduction of tribunal fees, requiring users of the system to pay fees in order to encourage them to "consider seriously the validity of their claim".
In addition, all employment disputes would be required to go to Acas for pre-claim mediation before proceeding to a tribunal.
"Many employers still feel that employment law is a barrier to growing their business. We're knocking down that barrier today - getting the state out of the way, making it easier for businesses to take on staff and improving the process for when staff have to be let go,” said Mr Cable.
"But let me be clear: we are not rebalancing employment law simply in the direction of employers. Our proposals strike an appropriate balance and we are keeping the necessary protections already in place to protect employees. Our proposals are not - emphatically not - an attempt to give businesses an easy ride at the expense of their staff. Nor have we made a cynical choice to favour flexibility over fairness.
"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. Tribunals should be a last resort for workplace problems, which is why we want disputes to be solved in other ways."
For more on upcoming employment law changes, consult our experts today.
