Government proposals announced by Business Secretary, Vince Cable in November 2011 following consultation on resolving workplace disputes are being branded as some of the most radical employment law reforms in years.
On 6th April 2012 the qualifying period for unfair dismissal claims will increase from one year to two years. It is anticipated that this legal amendment will reduce the number of unfair dismissal claims received by Employment Tribunals by approximately 2,000. Nevertheless, concerns have been raised that although unfair dismissal claims may decrease as a result of this, claims that require no qualifying period made in relation to discrimination and whistle-blowing are likely to increase as a consequence.
It is also suggested that in order to reduce the number of employment tribunal claims made, claimants will be required to submit their details to acas and offered pre-claim conciliation. This proposal is a modification of a previous one that suggested pre-claim conciliation should be a requirement rather than a no obligation service.
We are also expecting the Ministry of Justice to report on proposals to introduce tribunal fees in 2012. The intention of which is to enable employees with low incomes to lodge a claim without being required to pay a fee to do so. On the other hand, employers could be fined up to £5,000 in addition to damages imposed should they lose a case. The result of such changes is likely to mean an increase number of cases are settled rather than being taken to a full hearing.
Tribunals will also gain new powers in 2012 and subsequently have the ability to instruct employers to conduct and make public a pay audit should they breach the Equality Act 2010. The government is planning to consult on the removal of the current duty on organisations to protect employees from third-party harassment. However, as this provision is underlined by EU legislation, its removal will not be easy.
Another potential change to employment law for 2012 could involve the reduction in redundancy consultation periods. Collective redundancy consultations involving 100 people or more may be reduced from 90 days to 30 after the government has called for evidence in order to review the current regulations. Mr Cable has announced that employers have informed him that a period of 90 days consultation is considered to be too long and results in the delay of agreed changes or restructuring. In response to claims that a decision has already been made on this matter, Mr Cable has confirmed that the government 'have an open mind' and no decision has been made at present. Watch this space.
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