George Osbourne has announced two changes that will significantly help emloyers deal with the red tape and costs when facing employment tribunals.
Mr Osbourne claims that the changes will reduce the number of Employment Tribunals and boost the economy.
On balance I think I agree on this one. Our clients and customers at both Dataplan Payroll Limited and Forrester Boyd often comment that the cards are stacked against employers when it comes to employee rights. These changes seem to close some of the easy loopholes where employees can take employers to tribunal at negligible cost and potentially with spurious claims.
The first change is to amend the qualifying period for unfair dismissal claims from one year to two. This change will take effect from 1 April 2012.
The second change is a cost one. It seems fees are to be introduced for tribunal claims. Yet to be confirmed it appears that the fee structure will start with a fee of £250 to lodge a claim. A further £1,000 is payable by the Claimant when the hearing is listed. Fees are refundable if won and forfeited if lost. The are likely to be exemptions for low paid or on benefits.
When implemented these changes will make a refreshing change for employers across the UK.
