This Friday, 6 April 2012, is the key date for a number of significant employment law changes this year, many of which revolve around the employment tribunal system.According to the Government, these
This Friday, 6 April 2012, is the key date for a number of significant employment law changes this year, many of which revolve around the employment tribunal system.
According to the Government, these changes will "make it easier for businesses to take on staff and improve the process when staff have to be let go". The changes are part of the Government's radical reform package which it believes will deliver direct net savings to business of more than £10 million a year, with wider benefits to employers estimated at more than £40 million a year.
From 6 April 2012:
• The qualifying period for claiming unfair dismissal will double from one year to two years. This will only affect employees who start employment on or after this date. The qualifying period for entitlement to written reasons for dismissal will also double from one year to two years.
• The maximum level for costs awards will double from £10,000 to £20,000.
• The maximum deposit order will double from £500 to £1,000.
• Judges will be able to sit alone in unfair dismissal cases.
• Witness statements can be taken as read and stand as evidence-in-chief, unless the judge or tribunal directs otherwise.
The Government has also confirmed that, from this Friday, it will publish the average value of awards and the time taken to reach a hearing. Included in the guidance for tribunal application and response forms, this information is intended to clarify what parties can expect from the tribunal process before they enter the system.
The increase in the qualifying period for unfair dismissal, perhaps the most controversial of all the proposals, has attracted much criticism. The CIPD has stated that "there is no evidence to suggest that extending the qualification period for an employee to claim unfair dismissal will have any significant impact on the number of claims brought against employers, let alone boost the economy by increasing employers’ propensity to hire new staff". The TUC believes that around 2.7 million workers across the UK could face an increased risk of losing their jobs as a result of the extended qualifying period.The CBI, however, has welcomed the extension as a positive step.
As with many of the Government's proposals, it is likely to be some time before we know the true impact of the changes. In the meantime, employers should be aware that these are just some of the Government's reforms to employment law - there are plenty more still to come...
According to the Government, these changes will "make it easier for businesses to take on staff and improve the process when staff have to be let go". The changes are part of the Government's radical reform package which it believes will deliver direct net savings to business of more than £10 million a year, with wider benefits to employers estimated at more than £40 million a year.
From 6 April 2012:
• The qualifying period for claiming unfair dismissal will double from one year to two years. This will only affect employees who start employment on or after this date. The qualifying period for entitlement to written reasons for dismissal will also double from one year to two years.
• The maximum level for costs awards will double from £10,000 to £20,000.
• The maximum deposit order will double from £500 to £1,000.
• Judges will be able to sit alone in unfair dismissal cases.
• Witness statements can be taken as read and stand as evidence-in-chief, unless the judge or tribunal directs otherwise.
The Government has also confirmed that, from this Friday, it will publish the average value of awards and the time taken to reach a hearing. Included in the guidance for tribunal application and response forms, this information is intended to clarify what parties can expect from the tribunal process before they enter the system.
The increase in the qualifying period for unfair dismissal, perhaps the most controversial of all the proposals, has attracted much criticism. The CIPD has stated that "there is no evidence to suggest that extending the qualification period for an employee to claim unfair dismissal will have any significant impact on the number of claims brought against employers, let alone boost the economy by increasing employers’ propensity to hire new staff". The TUC believes that around 2.7 million workers across the UK could face an increased risk of losing their jobs as a result of the extended qualifying period.The CBI, however, has welcomed the extension as a positive step.
As with many of the Government's proposals, it is likely to be some time before we know the true impact of the changes. In the meantime, employers should be aware that these are just some of the Government's reforms to employment law - there are plenty more still to come...