The current Government has made plain their intentions to simplify and, in some cases, restrict some of the employment legislation which has been introduced over the past 15 years. Important changes employers need to be aware of:
- Increasing the service requirement for unfair dismissal
The Government is proposing to increase this from one year to two years. This will take us back to the position in 1997, but it will be important to bear in mind:
- This could be seen as discriminatory as women have a higher turnover rate than men and are therefore less likely to have two years' service
- There are still claims that can be brought with no qualifying period, for example, whistleblowing, discrimination and claims under the Working Time Regulations.
- Discrimination
The Government wants to limit the amount that a business can be forced to pay out in discrimination cases after business leaders argued that a lack of certainty over what a company might end up paying had led claims to settle early.
- Redundancy
Business leaders say that the obligation to enter into a 90 day consultation period with the workforce is preventing them from restructuring efficiently as they have to pay employees for an extra 3 months and many businesses in this situation do not have the funds for an extra 90 days' pay. Unions say the rule gives workers on notice some breathing space before losing their jobs.
- TUPE
The TUPE rules are designed to ensure that workers' terms and conditions are protected if the business is taken over. The rules have protected public sector workers in privatisations or outsourcing contracts. The Government, however, agrees with business leaders who say that the rules are 'gold plated and overly bureaucratic'. Unions say the rules uphold workplace standards but that they do not go far enough as they fail to protect workers' company pension scheme rights.
- Changes to Employment Tribunal Procedures
The Government's aim is to reduce the number of Tribunal claims and encourage solutions out of court in order to save costs. The proposals include:
- The introduction of a fee for bringing a Tribunal claim
- Compulsory mediation via ACAS
- Greater use of cost penalties in the Employment Tribunal
- Tribunal forms giving details of the levels of compensation that can be expected when bringing a claim.
The consultation on these changes has now closed and we are awaiting the Government's response. These are exciting developments and welcome news to most employers as they will collectively help to ease the burden of managing personnel affairs. If you require any further information or assistance with any employment law matters please contact the Employment Law Team on 0114 266 6660.
