Government Announces Root and Branch Reform to the Employment Tribunal System

Date Added: 03 February 2011

Following our news item dated 25th January 2011, confirmation has come from the Government that there are plans to reform the Employment Tribunal System.

The stated aims of the proposed reforms are to encourage small businesses and employees to recruit new employees, to improve the efficiency of the Tribunal System and reduce the number of unreasonable and misguided claims being brought by disaffected employees.

The proposals include:-

• 1. A rise in the qualifying period for bringing an unfair dismissal claim from one year to two years – the pre 1999 system.
• 2. Requiring all claims to be submitted to ACAS for conciliation, prior to a claim being filed with the Tribunal.
• 3. Introducing a fee, to be paid by the employee, when a claim is lodged.
• 4. Providing flexibility to the Tribunal to manage and strike out weak cases.
• 5. Increasing the limit on the cost orders that Tribunals can make in limited circumstances from £10,000.00 to £20,000.00.
• 6. Introducing financial penalties to be levied against employees who have breached employment rights.

The proposals have received a mixed press. The CBI and Chamber of Commerce are pleased but Unions are concerned that the changes will encourage employers to dismiss staff within the two year period and that access to Justice through the Employment Tribunal will be more difficult for the employee.

Comments have been invited from business, individuals and other interested parties on the process. The consultation period will run until 20th April 2011 and an announcement from the Government will be expected thereafter.

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