South's businesses could benefit from proposed employment changes

Today’s announcement by the government could see the South’s employers dealing with more lenient employment legislation advises Moore Blatch solicitors.

The proposed changes aim to relax the current employment laws to provide a boost to the private sector, encouraging companies to take on new workers, whilst protecting fairness and providing the competitive environment required to help growth.

Moore Blatch employment expert, Katherine Maxwell comments: “The proposed changes to employment law could see workers needing to be in employment for two years before being able to bring a claim for unfair dismissal.

“The new proposals will give employers more powers to sack under-performing staff without the threat of tribunal proceedings,” she said.

Currently, employees are able to bring an unfair dismissal claim after a year’s employment.
Other changes could also include introducing a fee for bringing employment tribunal claims. This is to deter opportunistic, false or malicious tribunal allegations.  The Government estimates that the increase will result in between 3,700 to 4,700 fewer unfair dismissal claims per year.

Tribunal claims rose to 236,000 last year, a record figure and a rise of 56 per cent on 2009. Companies have to spend £4,000 on average to defend themselves – which can represent a significant amount to small businesses. Most companies decide to settle cases, even if they believe the claim has little or no merit, because the cost of fighting – or losing the claim – is much greater.

Katherine concludes: “The government is showing its support of smaller companies, as they are seen as the key to securing economic recovery.

“It is hoped that changes of this sort would encourage them to hire more employees. For many employers the latest changes will be welcomed,” she said.  

The proposed employment changes were announced today, but the government is keen for consultation with businesses. This will close on 29th April 2011.