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Cable announces proposals to reduce tribunal claims

The Business Secretary, Vince Cable, announced proposals to reduce the number of claims made in employment tribunals today. The measures are also aimed at encouraging employment growth by making it easier for businesses to dismiss employees.

The proposals include:

  • Increasing the length of time an employee must work in a business before being able to claim unfair dismissal from one to two years
  • Making all claims go through ACAS for one month before going to an employment tribunal
  • Imposing fees on people bringing tribunal claims
  • Allowing claims to be heard by judges sitting alone.

The consultation period ends on 20th April.

Commenting on the proposals, Nick Soret, of RBS Mentor Employment Law & HR said:

“These proposals are aimed more at reducing the cost of the employment tribunal system than making things easier for employers.

“Employees have an increasing number of rights from day one of employment including all discrimination claims. In addition, the potential for unfair dismissal claims will increase at a stroke from April with the abolition of the default retirement age.

“Furthermore, the last time the qualifying period for unfair dismissal was two years, employers were no better off as employees brought claims that the qualifying period itself was discriminatory”.

“However, employers are likely to welcome anything that shortens and simplifies the time and cost of employment tribunal proceedings”.



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