Government Proposals for Employment Law Reform

05/10/2011
Businesses who were keeping a close eye on the Government’s consultation on Employment Tribunal Reform 2011, “Resolving Workplace disputes: A consultation”, will be interested to hear that the Government has published on the internet proposals to deregulate business.
 
The internet based document, which contains a forward from the Minister of State for Business and Enterprise and is entitled “One in, One Out, Second Statement of New Regulation”, appears to show that the Government has already decided what steps it is going to take in respect of three key employment law issues which were raised as part of the Consultation:
 
Also hot off the press are Chancellor George Osborne’s announcements at the Conservative Party conference about changes in employment law.
 
Osborne’s Changes - Unfair Dismissal and Tribunal Fees
 
One of the proposals of the Consultation was to increase the qualifying period for unfair dismissal from one year to two years. Chancellor Osborne’s announcement at the conference that the government will go ahead and raise the qualifying period with effect from 1 April 2012 appears to have settled the issue.
 
The Consultation also proposed to charge claimants a fee for bringing employment tribunal claims, to discourage claimants from bringing vexatious claims. Osborne has confirmed the internet based document’s conclusion. The Government will be introducing fees for lodging ET cases, though it is not clear what level the fees will be. The indications are that there will be an upfront fee of £250 for lodging the claim form or ET1; a further fee of £1,000 payable by the Claimant when the hearing is listed (this fee to be refunded if the Claimant wins and forfeited if they lose); and provisions on waiving fees for those on benefits.
 
 
Third Party Harassment
 
As part of the Government’s action to cut the regulatory burden on British businesses, it has outlined plans to consult on removing requirements for businesses to take “reasonable steps” to prevent harassment of their staff by third parties. These requirements are imposed by the Equality Act 2010. The concern is that businesses have no direct control over harassment their staff may face from third parties. The Government claims this will save British businesses £0.3 million.
 
Next steps
 
Businesses should keep tabs on whether these proposals will be officially published and await to see if the Government legislates on this basis. It will be interesting to see how the proposals fit in with EU law. Watch this space and we will come back to you with any further developments on these issues.
 
To contact the employment unit contact 01522 888555 for Lincoln or 01904 610886 for York.
 
 
 

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