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Government’s employment tribunal reforms are flawed, says IoD

The Institute of Directors (IoD) has argued in its response to the consultation ‘Resolving Workplace Disputes’ that the Government’s proposed reforms to the employment tribunal system are flawed. The IoD does not believe that the proposals will achieve any significant reduction in the number of weak complaints or costs to business in terms of management time and lawyers’ fees.

 

To give employers greater incentives to take on new staff the IoD believes that the Government should revise its proposals and tackle the problem of spurious claimants much more aggressively. It urges ministers to do this by introducing stronger ‘strike out’ powers for tribunals, universal employee deposits and compulsory pre-claim conciliation.

 

Commenting, Alexander Ehmann, Head of Regulation at the IoD said:

“At the same time that the Government is trying to reduce the number of claims with this exercise, it is creating new grounds for bringing claims through abolition of the Default Retirement Age. The net result may well be a continuing increase in the number of claims year on year, which makes it even more important that the Government revises its proposals so that we have a tribunal system that works for both sides.”

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