Employment update: new reforms announced affecting unfair dismissal claims.

Changes to unfair dismissal cases were announced last week by Chancellor George Osborn in a bid to save businesses £6 million a year.

The changes include an adjustment to the qualification period for the right to claim unfair dismissal, increasing it from one year to two years.

In addition, those wishing to issue a claim in a Tribunal will also now have to pay an up-front fee of £250 plus incur a further cost of around £1,000 if a hearing is granted.

In cases where damages of more than £30,000 are sought, a larger fee will be charged.

The Government is to bring the changes into force on April 6, 2012 in an attempt to make it more difficult for employees to pursue spurious claims against employers in an Employment Tribunal.

The changes form part of the Government’s plans to deliver growth by breaking down barriers, boosting opportunities and creating the right conditions for businesses to start up and thrive. However trade unions argue the changes mean workers rights are being put in jeopardy.

Ian Hodson from The Bakers Food and Allied Workers Union commented: “With each day, it becomes clearer as a trade union that despite Brits being the most legislated workers in the world, we are still unable to expect fairness in the workplace.

“This is a war on working people perpetrated by those who continue to prosper; it seems the new laws will enable some companies to avoid legislation brought in to protect vulnerable workers.”

“We need to think clearly about the message we are sending out, why should those who sack workers illegitimately require further protection?”

Sadiq Vohra, partner and employment law specialist at MWR Solicitors, Preston, commented:

”The extension of the unfair dismissal qualifying period will have little effect on businesses as intended. Instead, extending the qualification period does have a significant impact on the employee – just because an employee is dismissed unfairly in the first year of employment, it doesn’t mean the claim should be treated any differently to an unfair dismissal taking place in an employee’s tenth year of employment  – the extension will therefore just force people to wait for protection.

He added:

“The introduction of the up-front fees is going to create a huge new administrative burden for the tribunal system, especially as those who normally claim for unfair dismissal are usually out of work and are therefore unable to cover the cost.”

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