Five things you need to know about new employment law reforms

Employment law specialist, Sadiq Vohra outlines the Government’s proposed changes to employment law and how it may affect workers.

Months of speculation were brought to an end this week when business secretary, Vince Cable announced Government proposals for what is claimed to be the biggest shakeup in employment law for decades.
The Government’s employment law reforms aim to increase flexibility for employers but while some business groups welcome the changes to the Employment Tribunal System, others believe it will be harder for workers to bring cases to a tribunal.

1. Firstly, the government has announced that there will be an adjustment to the qualification period for the right to claim unfair dismissal, increasing it from one to two years. This means that people who have been working for their employer for less than 24 months will be unable to pursue any unfair dismissal claim. While this does mean that people will need to wait longer to be protected against unfair dismissal, it won’t apply to discrimination cases.

2. Secondly, the Government is still considering allowing firms with ten or fewer workers to be able to dismiss employees without risk of a tribunal. Employees subject to this would receive only basic redundancy pay and notice.

3. The measures also include a consultation on the possible reduction of the current 90-day consultation period for large-scale redundancies or ‘collective redundancies’ to just 30 days. This is a move that will be opposed by trade unions.

4. Among the proposals, ‘protected conversations’ between an employer and worker to discuss issues could be brought in following a consultation period. This would allow employers to have frank discussions about poor performance without fear that they could be used as evidence in a tribunal.

5. The Government would like to see compulsory lodging of all claims to go through conciliation organisation ACAS, in an attempt to mediate before they can be lodged with the tribunal. Plus, a consultation on the introduction of fees for lodging a tribunal claim could also be brought in. The introduction of up-front fees could have the potential to create a huge new administrative burden for the tribunal system.

Some of the proposals will require the Government to pass primary legislation and it is unlikely that all proposals will become a reality. Trade union bosses have already voiced their disapproval and such a radical employment law reform will require a detailed consultation.

That being said, it is important to acknowledge that the proposed new laws will enable some companies to avoid legislation brought in to protect vulnerable workers. It is therefore difficult to see how the changes could bring about prosperity and secure new jobs as the Government outlines, instead it seems that it will become easier for employers to fire rather than hire.

If you want advice on how to make an unfair dismissal claim or would like further guidance on how the new changes may affect you, please contact Sadiq Vohra at MWR Solicitors on 0800 731 0717 or email sadiq.vohra@mwrlaw.com