George Osborne Announces Employment Reforms

Author: Alexis Asher

George Osborne has today announced two forthcoming changes to Employment Law and, in particular, Employment Tribunal practice and procedure.

From 1 April 2012, the qualifying period after which an employee will be eligible to bring a claim of unfair dismissal, will be increased from one year to two years.

There is also the proposal to introduce fees for Tribunal claims. At the time of writing, details have not been fully confirmed. However, the initial information available suggests that claimants will be charged a fee of £250 when issuing their claim, and a further £1,000 when their claim is listed for hearing.

There is further speculation on the fee structure, including the possibility of higher fees where the claim is for a sum over £30,000 and a potential waiving of fees where a claimant can demonstrate they do not have the ability to pay. As yet, it is not clear how an individual’s means to pay will be assessed. There is a suggestion that fees will be refunded to a successful claimant, but lost if they do not succeed in their claim.

The Government’s aim is to reduce the number of claims made to the Employment Tribunal, and boost the economy by encouraging employers to recruit more freely without the fear of claims. It remains to be seen whether the changes will achieve this aim.

We will be keeping you updated with developments and opinion over the coming days.

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For further information or to discuss a particular matter or situation in more detail, contact Alexis Asher at our St Albans office by email at alexis.asher@salaw.com or on 01727 798023.

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