Government Announces Shake-Up Of UK Employment Law

Fri, 25 Nov 2011

New laws which will make it easier for companies across the UK to sack staff were unveiled by the government yesterday.

Under the new rules, an employee will need to have been working for a firm for 2 years before they can sue for unfair dismissal, rather than one year, from April 2012.

They are part of a series of measures billed the "most radical reform package for decades", which will reportedly save the government £10 million and employers £40 million.

Business Secretary Vince Cable said the proposed changes will ease the pressure on firms when they hire and fire staff.

They include plans for all unfair dismissal claims to go to mediation conciliation service ACAS before going to an employment tribunal.

A "rapid, resolution scheme" for quicker, cheaper way to resolve disputes and a regional pilot scheme for smaller firms to use mediation are also included.

In addition, Mr Cable said he wants to get feedback on the idea of "protected conversations" where employers can discuss frankly with staff issues such as early retirement or poor performance without it being used at a tribunal.

Employment tribunals received a total of 218,000 claims last year, an increase of 44 per cent on 2008/9, with businesses spending almost £4,000 on average to defend themselves against a claim .
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