Financial & Legal News

Chancellor Announces Employment Law Reforms

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Chancellor George Osborne has announced two important changes to employment laws, intended to reduce the number of employment tribunal claims and boost the economy.

Unfair Dismissal Qualifying Period

The first change is to the qualifying period for the right to claim unfair dismissal which will be increased from one to two years with effect from 6 April, effectively doubling the amount of time a business can employ someone before risking an unfair dismissal claim.

The plans will make it harder for workers to claim unfair dismissal. Some commentators, however, have speculated that this will serve to actually increase the number of claims in types of discrimination where there is no qualifying period.

The Government claims that increasing the period to two years should see a reduction in the number of unfair dismissal claims by around 2,000 and an overall £6 million saving to British business.

New Employment Tribunal Fees

The second change is that fees will be introduced for tribunal claims.  In order to launch a tribunal claim workers will have to pay an upfront fee of £250, a further fee of £1,000 if the claim goes to a hearing, higher fees if the litigants claim is over £30,000 and reduced or no fees for those on low incomes. Employment Tribunal fees will be refunded to the individual if they win their case. The new fees will be introduced from April 2013.

Contacting us

Pearson Hinchliffe Commercial Law provides advice and assistance to employers on all employment law matters including Unfair Dismissal Claims and Employment Tribunals. For more information, contact Susan Mayall in our Employment Law team using the details provided below.

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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