YOU may have heard in the news recently that the Government is proposing various changes to employment claims.
The Government says that these changes are necessary to satisfy its objectives to promote the growth of businesses by removing barriers to recruitment, to increase flexibility and to ensure that any tribunal claims are dealt with as quickly and cost-effectively as possible. Some say they are pro-respondent and many proposals do appear to favour the employer, although there are a few that try to restore the balance of the proposals.
So, which proposals are welcomed by employers? The requirement to submit a complaint to ACAS before making a claim to an employment tribunal and the requirement to include a schedule of loss together with the claim form are two of them.
Other proposed changes are highly controversial. For example, currently, an employee who wishes to claim unfair dismissal must have been employed for at least one year (subject to various exceptions).
The proposal is to change this so that an employee requires two years service before being able to make such a claim. Some of you may recall that this was the position before the Employment Rights Act 1996, some 15 years ago. However, whether this will have such an impact on the number of claims being made remains to be seen.
It could result in more claims for discrimination being made which do not require a qualifying period of employment. Another plan is for employment tribunals to charge claimants a fee, and figures mentioned have been as high as £500. T hat could deter many employees from making claims as many may not have the funds to pursue such claims. In addition, the value of their claims may not be as high as this. Most employers will welcome these proposals as they will prevent former employees making malicious and unmeritorious claims. Also, the proposal to withdraw the right for witnesses and parties to claim costs and expenses will affect those on low incomes.
But one proposal less likely to win support from businesses is the introduction of a fine for employers found to be in breach of employment law. Fines of 50 per cent of any tribunal awards made to the employee with a minimum figure of £100 and an upper limit of £5,000 have been suggested. Such fines would be paid to the Exchequer, rather than the employee. There is much to consider and we shall have to wait and see what the Government decides following the consultation. Watch this space.
• The information above is provided for general information purposes only and is not intended to be construed or interpreted as legal or other professional advice.
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