Unfair dismissal claim term to double
Workers will not be able to claim for unfair dismissal unless they have been in a job for at least two years - not one, under government plans.
The extension is part of Chancellor George Osborne's plans to help business by changing employment law.
He is expected to reveal details at the Conservative party conference on Sunday.
The Trades Union Council criticised the proposal, saying it amounts to a "charter for bad bosses".
Mr Osborne told the Sun: "We talk a lot about trade union rights - but what about the right of the unemployed person to be given a shot at a job and a career?
"What about the rights of people currently sitting at home with nothing to do, desperate to get work, but the business can't afford to employ them because they fear they are going to be taken to the tribunal?"
Last year there were 236,000 cases of unfair dismissals, with an average award for successful complainants of about £9,000.
Under Mr Osborne's plan, workers will still be able to take action immediately if they suffer discrimination, but by reducing the risk of tribunals for unfair dismissals the government hopes bosses will feel more confident about hiring people.
The GMB union criticised the plan.
"The Tory Party is increasingly being funded by the asset strippers and predators. That explains why the Tories want to reduce the employment rights of ordinary workers not to be sacked from their livelihoods unfairly," it said.
"They are the same old nasty Tories now in the pockets of the predatory elite."
'Positive step'
However, business lobby the CBI, welcomed it.
CBI director general John Cridland said: "Extending the qualifying period for unfair dismissal is a very positive step.
"We have been urging the government to do everything it can to make it easier for firms to grow and create jobs, and this will give employers, especially smaller ones, more confidence to hire."
The government is also due to announce that it will launch a consultation on restricting the amount of time civil servants can spend working as union representatives.
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Unfair dismissal rule changes could save british Business £6million
Changes to unfair dismissal rules which could save nearly £6 million a year for British business have been announced today by Business Secretary Vince Cable and Chancellor George Osborne.
Today’s decision will see the qualification period for the right to claim unfair dismissal extended from one to two years. This will come into force on 6 April 2012. This is the latest development in the Government’s workplace reforms which aim to increase business confidence to take on more workers.
Changes to the unfair dismissal rules follow the ‘Resolving Workplace Disputes’ consultation published in January this year which also proposed measures to encourage early resolution of disputes, the speeding up of the tribunal process and measures to tackle weak and vexatious claims.
These combined proposals should see the number of unfair dismissal claims drop by around 2000 a year.
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.”
A key part of the Government’s growth strategy is to create the conditions which allow businesses, particularly SMEs, to grow and expand by reducing regulation and maintaining a flexible and dynamic labour market.
Over the past 18 months, the Government has started a fundamental Employment Law Review to ensure that it is fit for purpose, that it properly balances the needs of employers and employees, and provides the competitive environment required for businesses to thrive.
For 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.
The campaign asks for a variety of suggestions about how regulations can be improved, simplified or even abolished, whilst also ensuring that the current standard of employment rights for employees are maintained. 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.
Notes to Editors
1. The Employment Law Review is a Parliament long review looking at all aspects of employment law and is part of the Government's plans to deliver growth by breaking down barriers, boosting opportunities and creating the right conditions for businesses to start up and thrive. Since the review was announced last summer the Government has:
2. On 27 January the Government published a consultation ‘Resolving Work Place Disputes’ it sought views on measures to encourage early resolution of disputes, the speeding up of the tribunal process and measures to tackle weak and vexatious claims. To view the press notice go to http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=417630&SubjectId=15&DepartmentMode=true
3. The Red Tape Challenge was launched by the Prime Minister on 7 April. It gives the public the chance to have their say on some of the 21,000 regulations that affect their everyday lives. The website is available at www.redtapechallenge.cabinetoffice.gov.uk
4. The campaign has six cross cutting themes that affect all businesses and are open throughout the whole of the campaign. The six cross cutting themes are:
a. Employment law;
b. Pensions;
c. Company law;
d. Equalities;
e. Health and Safety; and
f. Environment legislation.
http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=421449&...