Employment Shake Up

News

24 November, 2011

Forbes Solicitors is warning that the landscape of employment legislation will radically change following proposed reforms announced by Business Secretary Vince Cable.

Several reforms have been announced including -

  • unfair dismissal qualifying period to increase to two years
  • compulsory lodging of all claims through Acas, for an attempt at mediation, before they can be lodged with the tribunal
  • consultation on the introduction of protected conversations, with the proviso that they will not extend to protect discriminatory acts
  • a call for evidence, with a view to consultation, on reducing minimum period for redundancy consultation to 60, 45 or 30 days.

Employment Solicitor Amy Stokes comments, "This is a big shake up and employers will certainly welcome the increase of the unfair dismissal qualification period to two years. Whilst it is of course important to protect employees rights, something has to give as businesses, especially small businesses, are concerned about taking on new workers due to the burdens and potential costs associated with current employment laws. These changes are steps in the right direction."

It has been reported that these reforms will deliver direct net savings to businesses of £10 million a year with wider benefits to employers estimated at more than £40 million at year.

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