Employment law barriers to be ‘knocked down’

Earlier today (23 November) Dr Cable (pictured) revealed the results of a consultation on resolving workplace disputes and the Red Tape Challenge review of employment law. Changes include an overhaul of employment tribunals, including routing all claims via the conciliation service Acas; a proposal to reduce the redundancy consultation period from 90 days to 30; and the introduction of 'protected conversations', enabling bosses to discuss performance issues with staff without fear of reprisal at tribunal. The minister said that although the UK labour market is recognised as being one of the most flexible, many businesses still feel that employment law is a barrier to growth. "We're knocking down that barrier today - getting the State out of the way, making it easier for businesses to take on staff and improving the process for when staff have to be let go," he said. He insisted, however, that the proposals do not favour employers over individuals. The proposals are "emphatically not" a move to give businesses an easy ride, he said. He also confirmed that from April 2012, individuals will need to have two years' service before making a claim for unfair dismissal. The Chartered Institute of Personnel and Development welcomed the announcements, although head of public policy Ben Willmott cautioned on one point: "Genuine proposals to simplify employment law and reform the employment tribunal system are welcome - but where it comes to 'protected conversations', the government needs to beware the spectre of unintended consequences." EEF chief Terry Scuoler said the measures "will allow companies more flexibility to create the employment opportunities our economy urgently needs". TUC general secretary Brendan Barber urged the government to think again, adding that the banks are to blame for lack of economic growth, not employment regulations: "Reducing protection for people at work will not save or create a single job. It's not employment law that is holding firms back, it's the tough economic climate and the problems many companies are having getting the banks to lend to them that's to blame. Barber also criticised the proposal for protected conversations: "Allowing conversations that happen at work over difficult issues like retirement or poor performance to take place but not permitting their record to be referred to in the future, should a case ever go to tribunal, is hugely worrying. This could simply provide the perfect cover for rogue bosses to bully at whim without fear of ever being found out.' The Department for Business says that of the 159 regulations examined in the employment theme of the government's Red Tape Challenge, more than 70 regulations (40%) are to be merged, simplified or scrapped. Further changes may follow for TUPE: the government is calling for evidence on proposals to simplify the rules. A further consultation is being held on changes to compromise agreements, which are to be renamed 'settlement agreements'.