Employment Law Shake-up - 16/02/2011

The warm welcome the Government's employment law shake-up was greeted with by many employers may have been a little premature. Whilst employers are justifiably please at the possible extension of the qualifying period for unfair dismissal claims from one to two years and the increased non-refundable fee that claimants will have to pay to bring a claim, they may have missed the automatic financial penalties for those employers who are found to have contravened the employment rights of their employees. These penalties will be in addition to any compensation and will probably be based on half the amount of the award made to the claimant.

Under the new proposals all claims will have to be submitted to ACAS and will also include a compulsory month of pre-claim conciliation with the aim of reducing the number of cases reaching the Tribunal. Whilst this adds another step and may lengthen the procedure it is hoped that it will be effective in spotting the spurious claim at an early stage. However the fear of large penalties on top of any awards made to the claimant will almost certainly force the majority of employers to offer settlements, however unjustified, unless the issues are crystal clear.

In another effort to cut costs one judge is to sit rather than a panel of three in the less complex cases. As so many employment law cases are extremely complex it is quite likely that all parties will press for the full panel. The best way to deal with employment law issues is to have solid copper bottomed contracts, policies and protocols in the first place and to follow them to the letter. Additionally to make sure your staff is thoroughly trained in every aspect of correct behaviour in the workplace and they are fully aware of the consequences, both to themselves and to their employers, of contravening current employment law.

If everyone knows what they should and shouldn't be doing there can be no defence or excuses if someone fails to do so.

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