Business secretary Vince Cable has announced what he called “the most radical reform to the employment law system for decades”. Skills Provision welcome these initiatives as over due rebalancing the relationship between employers and employees.
During a speech to EEF, the manufacturers organisation, Cable announced the results of a consultation on resolving workplace disputes and the Red Tape Challenge review of employment law.
The package of measures will include an overhaul of employment tribunals, which Cable says will deliver £40 million a year in benefits to employers. Ministers will also start a call for evidence on whether the 90-day minimum consultation period for collective redundancies should be reduced.
The Government will launch a call for evidence on two proposals on dismissal laws. It will seek views on a proposal to introduce compensated no fault dismissal for micro firms, with fewer than 10 employees. It will also look at ways to simplify existing dismissal processes, including potentially working with ACAS to make changes to their Code, or offering supplementary guidance for small businesses.
The Ministry of Justice will shortly publish a consultation on the introduction of fees for anyone wishing to take a claim to an employment tribunal. The consultation will seek views on two options. The first proposes a system that involves payment of an initial fee to lodge a claim, and a second fee to take that claim to hearing. The second option proposes introducing a £30,000 threshold, so those seeking an award above this level will pay more to bring a claim.
Of the 159 regulations examined in the employment theme of the Red Tape Challenge more than 70 regulations are to be merged, simplified or scrapped. The Government will:
As part of the response to the Resolving Workplace Disputes consultation, the Government has committed to:
This can only be a glimpse into future law but the impact is far reaching and needs to be understood by every business owner and employer.
Author: Chris Slay
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