The short answer (welcomed by some, but worrying for others) is no.The Government has not been shy about its intentions to reform employment law and has now published its long-awaited plans, described
The short answer (welcomed by some, but worrying for others) is no.
The Government has not been shy about its intentions to reform employment law and has now published its long-awaited plans, described as "the most radical reform to the employment law system for decades". Over the past few months, many of the proposals have emerged in the press, providing some insight into the future of employment law. However, the Government has now revealed the true breadth of its reforms, some of which have not been seen before. So what does the Government have in store?
The key proposals are as follows:
• The unfair dismissal qualifying period will double from one year to two years from April 2012
• Employees will be required to submit details of their complaint to ACAS, giving parties the opportunity to resolve their dispute through conciliation, before going to tribunal
• The Government will consult on the introduction of a system of "protected conversations" in 2012, allowing employers to raise issues such as retirement or poor performance openly with staff, without this being used in subsequent tribunal claims
• The Government will consult on simplifying compromise agreements (to be renamed "settlement agreements")
• There will be a root-and-branch independent review of employment tribunal rules of procedure
• Financial penalties will be introduced for employers who breach employment rights
• The Government will consider whether it can introduce a "rapid resolution" scheme, to provide quicker, cheaper, determinations in low value, straightforward claims
The Government will also seek views on the controversial proposal to introduce "compensated no-fault dismissals" for micro firms with fewer than 10 employees and consider how the existing dismissal process could be slimmed down and simplified. It also has plans to close a "loophole", to prevent employees from being protected under whistleblowing legislation when they blow the whistle about breaches relating to their own employment contracts. Vince Cable has also confirmed that of the 159 regulations looked at under the Red Tape Challenge on employment law, over 40% are to be merged, simplified or scrapped. For example, from 2013, once a CRB check has been conducted, the results will be available online. The Government also plans to consolidate 17 National Minimum Wage regulations.
The Government has also launched two calls for evidence. The first is on the 90 day minimum consultation period for collective redundancies (exploring whether this can be reduced to 60, 45 or even 30 days). The second is on how the Transfer of Undertakings (Protection of Employment) Regulations 2006 could be simplified.
And, if this isn't enough to contend with, you can be reassured that there is another consultation paper on its way on introducing fees for employees who wish to bring a tribunal claim. There will be two options to consider. The first option proposes a system that involves payment of an initial fee to lodge a claim and a second fee to take the claim to hearing. The second option proposes introducing a £30,000 threshold, so those seeking an award for more than £30,000 will pay more.
The scope of reform leaves little time to draw breath. The Government is clearly committed to changing employment law and employers will undoubtedly welcome the proposals to simplify employment law and the employment tribunal system. However, this level of reform requires a considered, rather than scattergun, approach and there is a real risk that that the Government's far-reaching proposals will lead to further confusion and complexity - the lack of clarity surrounding the proposed "protected conversations" has already caused considerable concern. With more consultations and proposals on the cards, this is unlikely to offer much comfort to employers.
The Government has not been shy about its intentions to reform employment law and has now published its long-awaited plans, described as "the most radical reform to the employment law system for decades". Over the past few months, many of the proposals have emerged in the press, providing some insight into the future of employment law. However, the Government has now revealed the true breadth of its reforms, some of which have not been seen before. So what does the Government have in store?
The key proposals are as follows:
• The unfair dismissal qualifying period will double from one year to two years from April 2012
• Employees will be required to submit details of their complaint to ACAS, giving parties the opportunity to resolve their dispute through conciliation, before going to tribunal
• The Government will consult on the introduction of a system of "protected conversations" in 2012, allowing employers to raise issues such as retirement or poor performance openly with staff, without this being used in subsequent tribunal claims
• The Government will consult on simplifying compromise agreements (to be renamed "settlement agreements")
• There will be a root-and-branch independent review of employment tribunal rules of procedure
• Financial penalties will be introduced for employers who breach employment rights
• The Government will consider whether it can introduce a "rapid resolution" scheme, to provide quicker, cheaper, determinations in low value, straightforward claims
The Government will also seek views on the controversial proposal to introduce "compensated no-fault dismissals" for micro firms with fewer than 10 employees and consider how the existing dismissal process could be slimmed down and simplified. It also has plans to close a "loophole", to prevent employees from being protected under whistleblowing legislation when they blow the whistle about breaches relating to their own employment contracts. Vince Cable has also confirmed that of the 159 regulations looked at under the Red Tape Challenge on employment law, over 40% are to be merged, simplified or scrapped. For example, from 2013, once a CRB check has been conducted, the results will be available online. The Government also plans to consolidate 17 National Minimum Wage regulations.
The Government has also launched two calls for evidence. The first is on the 90 day minimum consultation period for collective redundancies (exploring whether this can be reduced to 60, 45 or even 30 days). The second is on how the Transfer of Undertakings (Protection of Employment) Regulations 2006 could be simplified.
And, if this isn't enough to contend with, you can be reassured that there is another consultation paper on its way on introducing fees for employees who wish to bring a tribunal claim. There will be two options to consider. The first option proposes a system that involves payment of an initial fee to lodge a claim and a second fee to take the claim to hearing. The second option proposes introducing a £30,000 threshold, so those seeking an award for more than £30,000 will pay more.
The scope of reform leaves little time to draw breath. The Government is clearly committed to changing employment law and employers will undoubtedly welcome the proposals to simplify employment law and the employment tribunal system. However, this level of reform requires a considered, rather than scattergun, approach and there is a real risk that that the Government's far-reaching proposals will lead to further confusion and complexity - the lack of clarity surrounding the proposed "protected conversations" has already caused considerable concern. With more consultations and proposals on the cards, this is unlikely to offer much comfort to employers.