Call for The Right Advice (local rate):

0800 612 4772

Employment Law Reforms - Latest News

As part of it's ongoing review of existing UK Employment Law, the Government today confirmed they will extend their review to consider reforming collective redundancy consultation periods, the Transfer Undertakings Protection of Employment Regulations (TUPE) and compensation for discrimination awarded by employment tribunals.

The Chancellor of the Exchequer, George Osborne said,  “If we are to support private sector growth and create jobs, we can’t shy away from looking at difficult issues like employment law. Examining these areas of the law which could be holding back job creation demonstrates the Government’s commitment to go for growth.”

The Government will look in detail at the case for reforming:

  • Compensation for discrimination. There need to be remedies for discrimination, but employers have expressed concern about the high levels of compensation sometimes awarded by Employment Tribunals in cases of discrimination - and the lack of certainty they have about the level of award they may be required to pay. Compensation levels for cases of discrimination are unlimited and employers worry that high awards may encourage people to take weak, speculative or vexatious cases in the hope of a large payout. This can lead to employers settling such cases before they reach a Tribunal.
  • As part of it's ongoing review of existing UK Employment Law, the Government today confirmed they will extend their review to consider reforming collective redundancy consultation periods, the Transfer Undertakings Protection of Employment Regulations (TUPE) and compensation for discrimination awarded by employment tribunals.

    The Chancellor of the Exchequer, George Osborne said,  “If we are to support private sector growth and create jobs, we can’t shy away from looking at difficult issues like employment law. Examining these areas of the law which could be holding back job creation demonstrates the Government’s commitment to go for growth.”

    The Government will look in detail at the case for reforming:

    • Compensation for discrimination. There need to be remedies for discrimination, but employers have expressed concern about the high levels of compensation sometimes awarded by Employment Tribunals in cases of discrimination - and the lack of certainty they have about the level of award they may be required to pay. Compensation levels for cases of discrimination are unlimited and employers worry that high awards may encourage people to take weak, speculative or vexatious cases in the hope of a large payout. This can lead to employers settling such cases before they reach a Tribunal.
    • Collective redundancy rules. Employers are concerned that the current requirement that consultation over collective redundancy runs for a minimum period of 90 days is hindering their ability to restructure efficiently and retain a flexible workforce. Employers in financial difficulty worry about how long they need to keep paying staff after it has become clear that they need to let them go. They also claim it is not clear from the legislation at what point consultation on redundancies should start or end.
    • TUPE. These rules implement a European directive and protect employees’ terms and conditions of employment when a business is transferred from one owner to another. These rules offer important protections but some businesses believe that they are `gold plated’ and overly bureaucratic.

    In a speech at the Institute of Economic Affairs, Employment Relations Minister Edward Davey said, “The areas we are reviewing are priorities for employers. We want to make it easier for businesses to take on staff and grow.  We will be looking carefully at the arguments for reform. Fairness for individuals will not be compromised – but where we can make legislation easier to understand, improve efficiency and reduce unnecessary bureaucracy we will.”

    The review the Government are undertaking is primarily aimed at creating the right opportunities for business to start up and/or thrive by reducing red tape and burdensome legislation.

    Tell us what you think about the proposed reforms!

    Is this the right approach?  Will the proposed reforms help YOUR business to grow and prosper? 

    Does your business comply with existing Employment Law?  Are you concerned about an HR issue and how best to approach it without risking a tribunal claim?

    Contact us today on 0141 314 3947 or 0800 612 4772 or Get a Quote online right now!

    Collective redundancy rules. Employers are concerned that the current requirement that consultation over collective redundancy runs for a minimum period of 90 days is hindering their ability to restructure efficiently and retain a flexible workforce. Employers in financial difficulty worry about how long they need to keep paying staff after it has become clear that they need to let them go. They also claim it is not clear from the legislation at what point consultation on redundancies should start or end.
  • TUPE. These rules implement a European directive and protect employees’ terms and conditions of employment when a business is transferred from one owner to another. These rules offer important protections but some businesses believe that they are `gold plated’ and overly bureaucratic.

In a speech at the Institute of Economic Affairs, Employment Relations Minister Edward Davey said, “The areas we are reviewing are priorities for employers. We want to make it easier for businesses to take on staff and grow.  We will be looking carefully at the arguments for reform. Fairness for individuals will not be compromised – but where we can make legislation easier to understand, improve efficiency and reduce unnecessary bureaucracy we will.”

The review the Government are undertaking is primarily aimed at creating the right opportunities for business to start up and/or thrive by reducing red tape and burdensome legislation.

Tell us what you think about the proposed reforms!

Is this the right approach?  Will the proposed reforms help YOUR business to grow and prosper? 

Does your business comply with existing Employment Law?  Are you concerned about an HR issue and how best to approach it without risking a tribunal claim?

Contact us today on 0141 314 3947 or 0800 612 4772 or Get a Quote online right now!




Add Pingback

Please add a comment






PROTECT YOUR BUSINESS TODAY  - GET IN TOUCH NOW