Changes to employment tribunal and unfair dismissal rules

31 October 2011
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Last month, the Chancellor, George Osborne, confirmed that the Government intends to make some big changes to the process of bringing claims to an employment tribunal. Find information about what changes you can expect next year and how to protect your business from tribunal claims.

The plans to double the qualifying period for unfair dismissal and introduce fees for bringing a claim to tribunal are all part of new measures to help the economy by making it less risky for businesses to hire people, something that has been welcomed by the business community as a whole.

Both changes to employment law are set to come into force on 6 April 2012.
 

Unfair dismissal claims

Currently, dismissed employees only have to work for you for one year before they can bring an unfair dismissal claim. Under the new measures, this will double to two years.
 
This is to give employers more time to deal with new employees who are underperforming and to make it easier to terminate employment.
 
However, these changes will not affect employees' entitlement to basic employment rights, many of which apply from day one of employment.
 
You should also ensure that any dismissal always follows the correct procedure. If you're unsure, find out how the Forum can help. Members can call us on 0845 130 1722 for further advice.
 

Tribunal claim fees

The changes will introduce for the first time a fee for bringing a case to tribunal. It is expected to cost employees £250 to lodge a claim and a further £1,000 if their claim is accepted and given a hearing date.
 
Claims with a value of more than £30,000 may be subject to a higher fee.
 
This new fee is meant to present an element of financial risk for the employee, who will only get the amount back if they win their case.
 
The aim of the new measures is to see a reduction in the volume of cases, especially low-value claims, being brought to tribunal and therefore – in theory – saving employers from unnecessary cost in money, time and stress.
 
However, for those employers unfortunate enough to be taken to tribunal, the changes will not make much difference. Therefore, it is important to try to avoid tribunals at all costs by following employment law and taking appropriate advice.
 
Forum members are reminded that they should call us on 0845 130 1722 before taking any action, as this may affect their legal expenses insurance cover.
 
For comprehensive employment and HR advice subscribe to Practical Employer, which includes a practical guide, templates and helpline support to help you navigate your way through the employment process – from recruitment through to dismissal.


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