New Rules for Unfair Dismissal

Rules for Unfair Dismissal Set to Change

October 03, 2011

Following the publishing in January of the ‘Resolving Workplace Disputes’ consultation, the Government today announced that the qualification period for the right to claim unfair dismissal will be extended from one to two years.

This will come into force on 1 April 2012 and is the latest development in the Government’s workplace reforms which aim to increase business confidence to take on more workers.

Business Secretary Vince Cable said:

“The priority of this government is to increase growth in our economy. We have one of the most flexible labour markets in the world but there is more we can do to give British business the confidence it needs to create more jobs and support the wider economy to grow.

“Businesses tell us that unfair dismissal rules are a major barrier to taking on more people. So today we have announced that only after working for the same employer for two years can an employee bring an unfair dismissal claim.”

In addition to supporting growth, it is estimated that this signficant change to UK Employment Law will see the number of unfair dismissal claims reduce by 2000 per year nationwide.

The Government also confirmed today that over the next three weeks the Red Tape Challenge will focus on more than 160 different cross-Government employment related regulations that businesses have to deal with in all areas of the workplace.

Examples of regulations which Government is seeking views on include the rules on collective redundancies, employment agencies, immigration checks, the National Minimum Wage and statutory sick pay, to make sure they are fit for purpose and easier for businesses to understand.

Will this latest change create an environment in which the order books of UK business suddenly errupt giving Employers an immediate need to employee new staff, or are there more fundamental issues at the heart of the current economic climate that must be addressed first?

Tell us what you think, is this a positive example of central Government helping the business community or are there other, more important things Government could do to help small and medium sized businesses?

Please add a comment

Posted by Gordon Dow on
Attended a seminar at the recent National Business Convention and saw a presentation relating to this subject. So good timely advice (again) Gary. It was more focused on the retirement age being scrapped and that companies may have to look to dismissing their staff, but going to have to be very very sure of what they are embarking on.

Gordon
Posted by Laurie Clark on
The current system is a mess that presumes all employees a blameless victims all employers are bad.
I think we need to scrap the whole system and start again, let's save ourselves as a country billions and get rid of the whole tribunal system. If an employer treats someone unfairly let the employee sue in the civil court . I am sure their are plenty no win no fee lawyers who would access each claim and that would get rid of half the silly claims that currently are laid before the tribunal on the basis that employer will settle to save time an money .this money could be put back in to struggling small business to help create jobs for good employees and good employers
Posted by Lee R J Middlehurst on
Re-ajusted from previous post:

I am very concerned that ths change will only benefit poorly managed, prejudiced businesses and cause a lot of employee unhappiness and discontentment.

A more profitable and successful business is one with a happy, productive workforce. After the trial year assessing empoyees there should not be the fear of getting fired in the second year of employment if an employer finds out insignificant details about a good employee such as if they're gay or if they've got a transgendered partner, etc...

Is this legislation not going to benefit well run businesses?
Posted by Lee R J Middlehurst on
I am very concerned that ths change will only benefit poorly managed, prejudiced businesses and cause a lot of employee unhappiness and discontentment.

A more profitable and sccessful business is one with a hapy, productive workforce. After the trial year assessing empoyees there should not be the fear of getting fired in the second year of employment if an employer finds out insignificant details about a good employee such as if they're gay or if they've got a transgendered partner, etc...

Is this legislation not going to benefit well run businesses?
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