Will proposed changes to employment law help or hinder businesses?
As Employee Management Limited (http://www.employeemanagement.co.uk/) has previously reported, several changes to employment law have been proposed, and employers and employment law services organisations are divided over whether the changes are positive or will create further problems.
One of the most controversial showed changes are ‘protected conversations’ which would allow an employer to talk to an employee about poor performance, early retirement or other sensitive, work related issues without fear of reprisal for bringing up the subject at a later employment tribunal or hearing. Many employers currently feel unable to bring up sensitive subjects with employees for fear of their comments being used against them at a later date. Government Employment Minister, Edward Davey says that “The objective is to encourage people who are afraid of having conversations that they ought to be having, to have them’’.
Whilst trade unions have questioned what rules or criteria will be put in place for the regulation of such ‘protected conversations’ and fear that employers may use them to make inappropriate or illegal comments and accusations, business groups and providers of employment law services have expressed concern over any extra red tape and paperwork that will accompany such conversations, and that employers may not use their new rights because of the added administrative burden involved.
The Government insist that the proposed changes will not create a minefield of extra legislation or paperwork, and will make it easier for employers to talk frankly and openly with employees. It is not yet clear how each conversation will be started, or how employees will know if a particular conversation is protected. A consultation is expected to be launched in 2012 into protected conversations and their benefits, restrictions or criteria.
Other proposed changes include a change in unfair dismissal law which would increase the qualifying service to two years, and the simplification of compromise agreements – which could be renamed ‘settlement agreements’.
Mediation is discussed in the proposals, with the government and most employment groups agreeing that proper mediation can be beneficial and reduce stress, time and money spent in employment tribunals for most employment disputes. The main change would be that all disputes would be referred to ACAS initially for a fixed one month period of conciliation before they can progress any further. This is in the hope that such a system will lead to more disputes being resolved without the need for tribunal hearings.
Employment tribunals themselves will be reviewed, with the aim to reduce complex legislation. Deposit order limits may be increased to £1,000 and costs order limits to £20,000. Tribunals may be granted a new power to fine employers who have breached employment law. Alternatives to tribunals for small or minor claims may be introduced. Again, Government proposals in this regard are unclear at present with consultation to take place next year.
For further analysis of the proposed changes, and for general information on employment law services, go to the Employee Management Limited website at http://www.employeemanagement.co.uk/.
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