Unfair Dismissal ?
The Government has announced plans to increase the qualifying period of employment for unfair dismissal claims and proposes to introduce a fee system for employees who bring a tribunal claim.
At the moment, any employee who has been employed for one year may bring a claim in the tribunal if they believe that they have been unfairly dismissed, and the tribunal procedure is free. The consequences for small businesses in particular of a claim against them can be catastrophic in terms of legal costs and time spent dealing with the claim, even if there is no or little merit in the claim brought. The scope for speculative claims is huge and many claims are brought where the claimant has little prospect of success but in the hope that the employer offers them a financial settlement as damage limitation. The changes are intended to “end the one-way bet against small businesses”.
From April 2013, fees will be payable by employees who want to bring a tribunal claim. It is proposed that £250 will be payable by the employee to bring a claim and a further £1,000 if the claim goes to a hearing. The fees will be refunded if the employee is successful, but forfeited if they lose. The Government has said that “poor claimants” will not have to pay fees but has yet to define what it means by “poor claimants”.
The Government believes that these changes will result in 2,000 fewer tribunal applications each year, resulting in a saving for businesses of £60 million and freeing employers from some of the risks of employment, thereby encouraging an expansion of the jobs market.
The announcement hints at further measures yet to be unveiled and that this is just the tip of the iceberg, given that employers’ groups are likely to lobby for changes that go much further than this. Many employers, particularly small businesses, will welcome the announcement as a step in the right direction, after a long period of what has been seen as “employee friendly” legislation at the cost of the small business employer.
Progression Solicitors are happy to advise employers on all aspects of employment law and employees on their employment rights and can do so either at our new office at 5 Crescent Road, Windermere or our Ulverston office at 11 Queen Street.
Please contact us and ask for Janett Walker, our specialist employment solicitor.