Employers are set to benefit to changes to unfair dismissal rules to the tune of £6 million a year, according to the government.
The changes, announced on 3 October by Business Secretary Vince Cable and Chancellor George Osborne, mean that from 6 April 2012, the qualification period for the right to claim unfair dismissal will be extended from one to two years.
Changes to the unfair dismissal rules follow the Resolving Workplace Disputes consultation published in January this year, which also proposed measures to encourage early resolution of disputes, the speeding up of the tribunal process and measures to tackle weak and vexatious claims.
The government says it expects these combined proposals to cut the number of unfair dismissal claims by around 2,000 a year.
Business Secretary Vince Cable said: “Businesses tell us that unfair dismissal rules are a major barrier to taking on more people. So we have announced that only after working for the same employer for two years can an employee bring an unfair dismissal claim.”
John Dalby, head of the Employment department at Gregg Latchams, said: “Many businesses will welcome this change in the law, although employees are likely to feel that it is a backward step from their point of view.
“While this measure is likely to mean a reduction in employment tribunal cases, it is inevitable that workplace disputes will continue to occur and that employers and employees will continue to need expert employment law advice.
“We recognise that the time and costs involved in employment tribunal cases can be significant and our approach is always to explore alternative methods of settling disputes and resolve them without litigation if possible.
“As the employment law seminar we held last month demonstrated, this past year has seen some significant changes in employment law, such as the Equality Act 2010 and the scrapping of the default retirement age.
“When you are trying to concentrate on running your own business, it can be difficult to keep up with changes in legislation. However, not knowing your rights and obligations as an employer could prove costly if you find yourself on the receiving end of legal action, so it is essential for employers to ensure they have the advice they need to help them stay compliant with current legislation.”
For more information, please contact John Dalby.
