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Government announces employment law changes
23/11/2011

Stephen Brodie, Employment Partner at Brabners Chaffe Street in Liverpool comments on employment law changes announced by the Government today:

The proposed changes are unlikely to make a significant difference. There is already in effect a 1 year statutory probationary period for unfair dismissal claims. Most employers are able to assess staff within 12 months. The problem for employers is not so much unfair dismissal but instead managing the proliferation of other statutory employment claims such as discrimination and whistle blowing which can be brought without any qualifying period of employment. These types of claim are the most worrying especially for smaller employers as compensation is unlimited and in serious cases could put the employer out of business.

I am not certain that “protected conversations” will add any real benefit. We are already seeing an increasing use of compromise agreements and “without prejudice” discussions to resolve issues in the workplace and without the necessity of Tribunal proceedings.

The introduction of Tribunal fees will have limited impact because the majority of Claimants are unemployed or on low income and these Claimants will be exempt.

The requirement that claims need to go through ACAS before going to the Tribunal is more likely to add to costs and delay and will certainly increase bureaucracy. Employers may be resistant to having to deal with ACAS and employee and trade union representatives to iron out the case. This type of approach could actually encourage claims and make settlement harder to achieve if individuals perceive that they have ACAS support.

The statistics are showing that the employment hot potato is age discrimination. Average awards are around £30k, far higher than any other type of discrimination and the number of age discrimination and other discrimination claims is increasing. I suspect that one unanticipated effect of these proposals will be a significant increase in these types of claim in the future.


For further information contact Stephen Brodie at Brabners Chaffe Street on 0151 600 3150

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