Changes to unfair
dismissal rules which could save nearly £6 million a year for
British business have been announced today by Business Secretary
Vince Cable and Chancellor George Osborne.
Today’s decision will see the qualification period for the right
to claim unfair dismissal extended from one to two years. This
will come into force on 1 April 2012. This is the latest
development in the Government’s workplace reforms which aim to
increase business confidence to take on more workers.
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.
These combined proposals should see the number of unfair
dismissal claims drop by around 2000 a year.
Business Secretary Vince Cable said:
“The priority of this government is to increase growth in our
economy. We have one of the most flexible labour markets in the
world but there is more we can do to give British business the
confidence it needs to create more jobs and support the wider
economy to grow.
“Businesses tell us that unfair dismissal rules are a major
barrier to taking on more people. So today we have announced that
only after working for the same employer for two years can an
employee bring an unfair dismissal claim.”
A key part of the Government’s growth strategy is to create the
conditions which allow businesses, particularly SMEs, to grow and
expand by reducing regulation and maintaining a flexible and
dynamic labour market.
Over the past 18 months, the Government has started a fundamental
Employment Law Review to ensure that it is fit for purpose, that
it properly balances the needs of employers and employees, and
provides the competitive environment required for businesses to thrive.
For the next three weeks the Red Tape Challenge will focus on
more than 160 different cross-Government employment related
regulations that businesses have to deal with in all areas of the
workplace.
The campaign asks for a variety of suggestions about how
regulations can be improved, simplified or even abolished, whilst
also ensuring that the current standard of employment rights for
employees are maintained. Examples of regulations which Government
is seeking views on include the rules on collective redundancies,
employment agencies, immigration checks, the National Minimum Wage
and statutory sick pay, to make sure they are fit for purpose and
easier for businesses to understand.
Notes to Editors
1. The Employment Law Review is a Parliament long review looking
at all aspects of employment law and is part of the
Government's plans to deliver growth by breaking down
barriers, boosting opportunities and creating the right conditions
for businesses to start up and thrive. Since the review was
announced last summer the Government has:
consulted on a package of reforms to the employment tribunal
system, aimed at encouraging earlier resolution of disputes in the
workplace and reducing the number of tribunal cases (which are
costly for employers, employees and Government) launched an
Employer’s Charter that reassures employers about what they can
already do to deal with staff issues in the workplace launched a
review of the compliance and enforcement regimes for employment
law, with the aim of streamlining the system removed the Default
Retirement Age, thus removing significant paperwork obligations
for employers and bringing wider benefits to the economy, making
it easier for older people to continue workingannounced the
proposed abolition of the Agricultural Wages Board and
Agricultural Minimum Wage, pending consultation and the
Parliamentary process commissioned an independent review jointly
with DWP (from David Frost and Dame Carol Black) of the system for
managing sickness absence repealed the planned extension of the
right to request flexible working to parents of 17 year olds
decided not to bring forward the dual discrimination provision in
the Equality Act not extended the right to request time to train
to companies with fewer than 250 staff.
2. On 27 January the Government published a consultation
‘Resolving Work Place Disputes’ it sought views on measures to
encourage early resolution of disputes, the speeding up of the
tribunal process and measures to tackle weak and vexatious claims.
To view the press notice go to http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=417630&SubjectId=15&DepartmentMode=true
3. The Red Tape Challenge was launched by the Prime Minister on 7
April. It gives the public the chance to have their say on some of
the 21,000 regulations that affect their everyday lives. The
website is available at
www.redtapechallenge.cabinetoffice.gov.uk
4. The campaign has six cross cutting themes that affect all
businesses and are open throughout the whole of the campaign. The
six cross cutting themes are:
a. Employment law;
b. Pensions;
c. Company law;
d.
Equalities;
e. Health and Safety; and
f. Environment
legislation.
5. BIS's online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joshua Coe
Phone: 020 7215 5943
Joshua.Coe@bis.gsi.gov.uk