Workplace dispute reforms proposed by Government

The Government has announced the next steps in its comprehensive review of employment laws.

New plans to improve the way in which workplace disputes are resolved have been published alongside an “Employer’s Charter” – the measures are designed to give businesses more confidence to take on workers and support growth.

Tribunal claims rose to 236,000 last year – a record figure and a rise of 56 per cent on 2009 – and business has to spend almost £4,000 on average to defend itself against a claim. Concerns have been raised by businesses that the system has become too costly, takes too much time, places unnecessary strains on small businesses and that it is too easy to make unmerited or vexatious claims.

The Government wants to enable workplace disputes to be resolved as early and as easily as possible. The key proposals include:

• Increasing the qualifying period for employees to be able to bring a claim for unfair dismissal from one to two years.
• Encouraging parties to resolve disputes between themselves as early as possible.
• Speeding up the Tribunal process.
• Tackling weak and vexatious claims.

The Ministry of Justice has also committed to consult on introducing a fee structure for Employment Tribunal cases and appeals.