Employment changes can help boost growth

The Government’s employment law changes are the most radical since the Thatcher era, according to a Midlands lawyer.

Mike Wakeling, a partner in the employment department of Stratford-upon-Avon-based Lodders Solicitors, said the package would boost growth and encourage companies to create jobs.

He said: “Employers will feel a sense of relief that the issue is finally being tackled.

“Many have used overtime and temporary workers to get out of directly employing new staff. That was down to cost and the difficulty of dispensing with people where problems arose.

“It may take a year or two for this legislation to hit the statute book, but it will make a big difference.”

Controversial proposals include:

  • permitting employers to have “protected conversations” with staff in order to tackle them about under-performance without the risk of being taken to an employment tribunal;
  • a “call for evidence” about reducing the length of time that employers must consult with the workforce about planned major redundancies from 90 to 30 days;
  • extending the qualifying period for unfair dismissal claims from one to two years with effect from next April;
  • introducing fees for employees who wish to bring an employment tribunal claim;
  • requiring all claims to be lodged with ACAS to allow conciliation powers to tackle weak and vexatious claims;
  • and proposals to shorten tribunal hearings with increased use of judges sitting alone.

Mr Wakeling said: “In much of this we only have the outline so much depends on the detail. However this is a real opportunity to roll back the burdens on business.

“With growth so fragile it is vital that everything possible is done to make it easy for business to thrive.

“There still has to be a balance – bad employers exist and workers need to be protected from them. But many experts argued the pendulum had swung too far against employers in recent years.

“Unemployment is far too high and hopefully this package will play a part in Britain getting many more of its people back to productive work.”