Proposed changes will simplify employment tribunals
Proposed changes which were announced by the Business Secretary Vince Cable last month should, in theory at least, simplify the operation of employment tribunals, report HR consultants Employee Management Limited (http://www.employeemanagement.co.uk/). The proposals, which are part of the Government’s plans to reduce the burden of red tape on employers, include an increased qualifying period for unfair dismissal and various measures designed to speed up the processing of tribunal cases, deter Claimants from lodging unmeritorious claims and further penalise employers found to have deliberately flouted employment laws.
According to the Government, the current system makes it too difficult for employers to dismiss employees and complicates the process of employment tribunals. In the announcement, Vince Cable outlined plans to introduce a ‘compensated no fault dismissal system’ which would replace the concept of unfair dismissal, but this would only apply to ‘micro firms’, i.e. companies with fewer than 10 employees. This would mean that micro-business employers could dismiss a member of staff without stating a reason as long as they provide the employee with the same amount of notice and termination payments as they would receive if they were being made redundant. There are also plans to provide additional help for small businesses in relation to dismissals and refer tribunal claims for initial periods of compulsory conciliation.
Dr Cable was quoted as saying, ‘Let me be clear: we are not re-balancing 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 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. The TUC, on hearing of the proposals, did not agree however. General Secretary Brendan Barber said, ‘Reducing protection for people at work will not save or create a single job. It’s not employment law that is holding firms back, it’s the tough economic climate and the problems many companies are having getting the banks to lend to them that’s to blame. Research from the OECD shows that there is no link between regulation and economic output. German employees have much more protection at work and their economy is the strongest in Europe’.
Whether these proposals will be praised or criticised by employers is yet to be seen, but any improvement achieved in relation to conflict resolution, dismissals and employment tribunals will undoubtedly be welcomed.
Employee Management Limited can assist with a range of HR and employment law services. Find out more at http://www.employeemanagement.co.uk/.
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