Since blogging in November about the strangling effects of employment law on job creation, particularly for SME’s, the coalition government has taken action to re-balance the system.
Reforms are in place to give the employer an extra year before unfair dismissal can be claimed.
To date, the cost in both time and money to the employer has been high, even if they were found to have done no wrong! Some employers, in order to avoid the time and the cost, settle claims even when they were confident that if it went to tribunal, they will have be found to have done no wrong. So probably more importantly, the employee may now have to pay to take the matter to a tribunal, thus upping the anti; so far the employees had to bear no cost at all. Imagine doing the National Lottery where your ticket cost nothing – worth a whirl!
This, together with the involvement of ACAS and a new employers’ charter, should ease the situation a good deal.
This rebalancing of the system must remove the employers caution that has made then to hold them back from employing more people, and more jobs should be the result.