Major Employment Reform Proposed
Posted: Thursday 24 November 2011
Vince Cable yesterday announced in his speech on Reforming Employment Relations some major proposed employment law reforms some of which are set out in the Government’s formal response (Resolving Workplace Disputes: Government Response) to the Workplace Disputes consultation which was also published yesterday.
A brief summary of the key proposals are set out below:
An increase to the qualifying period from 1 to 2 years for unfair dismissal (this is expected to come into force in April next year).
- Consultation on introducing fees for Claimants to raise a Tribunal claim with a remissions system for those who need financial help. The Government has put forward two proposals:-
1. payment of a fee to lodge a claim, and a second fee to take that claim to a hearing;
2. £30,000 threshold, so those seeking an award of more than £30,000 will pay more.
- All claimants will be obliged to submit their complaint to ACAS in the first instance in order that parties are given an opportunity to resolve their dispute through conciliation before it can be taken to a Tribunal.
- Consultation on introducing a system of ‘protected conversations’ to “allow employers to raise issues such as poor performance or retirement plans in an open way, free from the worry it will be used as evidence in a subsequent tribunal claim”.
- Consultation on simplifying compromise arrangements, to enable two sides to reach a no-fault settlement in exchange for an agreement not to bring future claims. A standard text “settlement agreement” is proposed. In addition, the Government intends to rectify the issue relating to the wording of section 147 of the Equality Act which has caused some confusion as to whether discrimination claims can be compromised.
- Consultation on introducing for more straightforward matters a quicker and cheaper alternative to a tribunal hearing – a ‘Rapid Resolution’ scheme.
- Major review of the rules governing Employment Tribunals.
- Close the loophole in the Public Interest Disclosure Act relating to whistle-blowing to prevent employees blowing the whistle about breaches to their own personal employment contract.
- Consultation on a proposal to introduce compensated no-fault dismissal for micro firms – (i.e. with 10 or fewer employees).
- Consultation on simplifying dismissal process on how we might move to a simpler, quicker and clearer dismissal process – including, potentially, by working with ACAS to make changes to their Code, or by introducing supplementary guidance for small businesses.
- Intending to extend the right to request flexible working, and to modernise maternity leave so it becomes shared and flexible parental leave.
- Seeking feedback on the current collective redundancy consultation rules with a view to potentially reducing the period from 90 days.
- Seeking feedback on whether the TUPE Regulations are overly bureaucratic and gold plated.
- Financial penalties for employers who lose a Tribunal claim of up to £5,000 (to be decided by Employment Tribunal Judge).
It is intended that some of the proposals will be implemented in April 2012, including the increase in the qualifying period from 1 to 2 years. With regard to most of the other proposals there will be further consultation with a view to finalising the Government’s position.
The key proposals have been highlighted above, but these are by no means all the proposals. Further detail on the above is expected over the next few months. Keep up to date with Innes Clark's Employment blog for further information on this topic.
Contact Innes Clark if you would like to discuss this further.
