Radical Reforms to UK Employment Law

A number of significant potential changes were announced by the UK Government in late November 2011.  The stated aim of the reforms is to improve employment relations and help businesses to function without being unduly burdened by employment law.  Some of the key proposals are:

• the possible introduction of ‘protected conversations' between employers and employees without the employer fearing Tribunal related repercussions;

• simplifying "compromise" (i.e. severance) agreements;

• slimming down existing dismissal processes, including possible changes to the ACAS Code;

• the introduction of two systems of Tribunal fees:

1.      a system of one fee to lodge a claim and a second fee to take that claim to a hearing; and/or

2.      a £30,000 threshold, so those seeking an award of more than £30,000 will pay more.

• introduction of compensated ‘no-fault dismissal' for firms with 10 or fewer employees.

None of these proposals are yet law (nor are guaranteed to become law), but this shows the Government's commitment to help businesses grow and to simplify employment law for employers in what is a very difficult economic climate.