Business Secretary, Vince Cable, announces proposed changes to Employment Legislation

Yesterday, the Business Secretary, Vince Cable announced important changes to Employment Legislation.  As had been widely predicted, The Government confirmed that from April 2012 the qualification period for unfair dismissal will be increased from one year to two.

The announcement also confirmed changes to the Employment Tribunal system.  It is expected that anyone wanting to bring a claim via an Employment Tribunal will have to lodge a fee when registering their claim, then pay a second fee to take the claim to hearing.  Also under the proposed changes, all employment disputes would be required to go to Acas for mediation before proceeding to a tribunal.  These proposals are expected to ensure claimants "consider seriously the validity of their claim" before proceeding.

Significant changes are also proposed regarding the dismissal process in micro-businesses (those organisations with less than 10 employees).  Cable said "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"

However, Cable also stressed the following by saying "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."  Cable went on to say "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".  Amen to that last paragraph! 

With apologies to Employment Lawyers everywhere but I have seen the impact Employment Tribunals have on individuals and businesses alike and I agree wholeheartedly that disputes should be resolved without recourse to a Tribunal.  Having in place effective and positive HR processes is the first step to making sure this happens.