Latest developments
On Wednesday 23rd November, Vince Cable gave a speech at the EEF, the manufacturers’ organisation, to a selection of businesses on the topic of deregulation of employment law.
It includes an overhaul of employment tribunals so that:
- All claims will to go to ACAS to be offered pre-claim conciliation before going to an employment tribunal.
- Unfair dismissal qualification period will rise from one to two years in April 2012.
- A consultation will be published next year on protected conversations which allows employers to discuss issues like retirement or poor performance in an open manner with staff - without this being used in any subsequent tribunal claims.
- A further consultation will be published on simplifying the use of compromise agreements (where employers pay an agreed amount to an individual if both parties agree the employment contract should end).
- We will explore options for a rapid resolution scheme – an alternative system of determining cases, to provide quicker, cheaper decisions in low-value, more straightforward claims.
- The tribunal system will be streamlined – removing witness expenses, taking witness statements as read and needing only one judge in unfair dismissal cases. Mr Justice Underhill will also undertake a Fundamental Review of the Rules of Procedure governing Employment Tribunals and will report back to Ministers next year.
- The use of mediation will be encouraged between parties by introducing a regional pilot scheme for SMEs.
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The package also includes a call for Evidence on the Collective Redundancies consultation rules - looking at the impact of reducing the current 90 day consultation period, possibly to 60,45 or even 30 days. Evidence suggests that the current 90 day period is too restrictive for businesses and in periods of redundancy doesn’t give them enough flexibility with their business plans.
He also announced that in response to the Red Tape Challenge more than 70 employment related regulations are to be merged, simplified or scrapped. The Government will:
- Publish a call for evidence on proposals to simplify the Transfer of Undertakings (Protection of Employment) - TUPE - rules which many businesses say are too complex and bureaucratic.
- Close a whistleblowing case law loophole which allows employees to blow the whistle about their own personal work contract.
- Merge 17 National Minimum Wage regulations into one set which will simplify the current regime, making it easier for employers to navigate the law, to complement the work the Low Pay Commission is doing on how best to streamline the system.
- Consult in the spring to streamline the current regulatory regime for the recruitment sector.
- Create a universally portable Criminal Records Bureau check that can be viewed by employers instantly online, from early 2013. These policy changes are being led by the Home Office.
Finally, the Government announced its intention to launch a call for evidence on two proposals:
- seeking views on a proposal to introduce compensated no fault dismissal for micro firms, with fewer than 10 employees;
- looking at ways to slim down existing dismissal processes, how they might be simplified, including potentially working with the Advisory, Conciliation and Arbitration Service (Acas) to make changes to their Code, or supplementary guidance for small businesses.
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