27/01/2011

New Plans Crack Down On Workplace Disputes

New government plans to improve the way in which workplace disputes are resolved have been published today alongside the Employer’s Charter.

The measures are designed to give businesses more confidence to take on workers and support growth.

The plans being put forward intend to increase the qualifying period before staff can make an unfair dismissal claim from one to two years.

Last year tribunal claims rose to 236,000 - a record figure and a rise of 56 per cent on 2009. Businesses has to spend around £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.

Business Secretary Vince Cable said: “Disputes in the workplace cost time and money, can affect morale, reduce productivity and hold back businesses. Today’s proposals address these concerns and should help give employers more confidence.”

“But let’s be clear - resolving disputes earlier is also in the interests of workers. No one wants to spend month after month worrying about a claim - we need to make what can be an extremely stressful time in people’s lives as short as possible.”

He added: “In the business world there is also a common misconception that employment protections are all one-way - towards the employee. The Charter we are publishing today tackles this myth by setting out clearly some of the most important rights that employers already have in the workplace.”

Justice Secretary Kenneth Clarke said: “The intention of the Charter is to raise awareness and give clarity amongst employers on what they can and can’t do when managing their staff and covers a wide range of employment law issues.

“The employment law review is taking a comprehensive look at employment legislation across government. In the next few months, requirements will be considered on employers when they take on staff to ensure that it is as simple and straightforward as possible. As part of this, we intend to publish a model contract for employers shortly.”

(BMcN)


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