Employment Law Reforms

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In a speech to the Engineering Employers’ Federation on 23 November, Business Secretary Vince Cable spoke of several employment law reforms which will impact the payroll department.  We do not intend to cover these in any depth; however, it is worthwhile pointing these out, particularly as some may impact the payroll function:

• The Government plans to simplify existing legislation and merge the current 17 Regulations into one set
• The Secretary confirmed that the Government is committed to modernising maternity leave so that it becomes ‘shared and flexible’ for parents plus that there will be extensions to the rights to flexible working
• The Government launched a ‘call for evidence’ on the TUPE Regulations, their effectiveness and areas for improvement.  This is in the light of concerns that they are seen as ‘gold-plated’ and complex.  The call for evidence is open until 31 January 2012 – see Further Information
• The launch of a ‘call for evidence’ on the implications of reducing the statutory collective redundancy consultation period down from the current 90 days.  This call is also open until 31 January 2012 – see Further Information

There were also mentions of the dismissal process, with a focus on ‘no-fault’ dismissals for micro employers and a general ‘slimming down’ of the existing dismissal process.  Further, the Government will make changes to the whistleblowing legislation, preventing employees ‘blowing’ about breaches to their own contracts of employment, something it was not intended to allow.

The Government also published its response to their 2010 consultation on resolving workplace disputes.  With the intention of delivering ‘a flexible, effective and fair labour market’, the proposals include:

• Increasing the unfair dismissal qualification period from one to two years
• Creating a ‘model text’ and guidance for Compromise Agreements that employers could use.  Further, the terms ‘Compromise Agreements’ and ‘Compromise Contract’, in the Equality Act 2010, will be retitled ‘Settlement Agreements’ in primary legislation
• Consulting on the introduction of ‘protected conversations’ , which would see employees and employers attempting dispute resolution without the fear this conversation would be ‘used against them’ in the event it broke down
• Introduce a requirement that potential employment tribunal cases be lodged with ACAS in an attempt to reach agreement through mediation and prevent the tribunal process
• A review of the Employment Tribunal process by outgoing President Mr Justice Underhill to create a ‘more streamlined and efficient system’.  Also, an examination of the case for a ‘Rapid Resolution Scheme’, intended to speed up and reduce the costs of ‘straightforward’ cases.  This would be open to consultation

Further Information

• Vince Cable Speech 23 November 2011
• Call for Evidence – Effectiveness of Transfer of Undertakings (Protection of Employment) Regulations 2006
• Call for Evidence – Collective Redundancy Consultation Rules
• Resolving Workplace Disputes: Government Response to the Consultation

Tags: Employment Tribunal, flexible working, maternity leave, Mr Justice Underhill, TUPE Regulations

This entry was posted on Saturday, November 26th, 2011 at 09:00 and is filed under Employment Law. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.