Radical changes to Employment Law announced

Posted on 29th November 2011

This week, Vince Cable made a speech setting out the changes that the government hopes to make to Employment Law over the next year ending months of speculation.

His aim is to, “fundamentally improve the way employers take people on, manage disputes and let people go” and to “clear away structural barriers by deregulating unnecessary demands on business”.

The proposed reforms emphasise that litigation should be the last resort. They will be subject to consultation but include:

  • The introduction of protected conversations. These will allow important issues to be raised by employers without the concern that they will be relied on in evidence in tribunal claim.
  • Simplifying compromise agreements in the hope that they will be adopted in more workplace disputes.
  • The introduction of a rapid resolution scheme that will attempt to resolve claims without having to go to a tribunal.
  • A review of the rules and procedures of the Employment Tribunal to streamline and modernise them.
  • The introduction of tribunal fees to discourage speculative litigation.
  • The removal of litigants being able to claim that they are whistle blowers where they are concerned only about their own contract and terms of employment.
  • Introducing compensated no-fault dismissals for businesses with less than 10 employees.
  • Slimming down dismissal procedures.

Reducing red tape

The government is also making a series of proposals to simplify and cut down on legislation involved in employing others. Measures will include:

  • Creating a portable online CRB check.
  • Simplifying the paperwork surrounding agency workers and the recruitment sector.
  • Consolidating national minimum wage regulations
  • Reducing the 90 day period in collective redundancies.
  • Simplifying TUPE regulations.
  • Extending flexibility or paternal leave.

We are now clear about the matters that will potentially be subject to reform. However, the final version of each of the proposed reforms is some way off. We do not know how many reforms will be concluded, or how they will be concluded. The reforms aim to make things simpler for employers. However, only time will tell whether this is achieved in practice.