Business Secretary Vince Cable and Chancellor George Osborne announced yesterday changes to unfair dismissal rules which could save nearly £6 million a year for British business.
The decision will, from 6 April 2012, see the qualification period for the right to claim unfair dismissal increased from one year to two years continuous service.
Another measure due in April 2013 will see the introduction of a fee for lodging tribunal claims, with a refund to those individuals who are successful in winning their case.
The changes follow a consultation published in January which proposed these changes in addition to measures to encourage early resolution of disputes, speed up the tribunal process and reduce the number of weak and vexatious claims.
The changes come as part of a larger review held over the last 18 months and continuing still. The review is looking at 6 areas, employment law, pensions, company law, equalities, health and safety and environment legislation and seeking the public’s views on regulations that affect their everyday lives. You can take part in the review here.
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.”
