The Most Radical Reform to the Employment Law System For Decades:

After months of speculation and leaks to the press the most radical reform to the employment law system for decades was outlined yesterday. Business Secretary, Vince Cable, announced the proposals as part of the Government’s plan for growth, cutting unnecessary demands on business while safeguarding workers’ rights.

In response to the suggestion by employers that dismissal laws are too onerous, particularly for small business, the Government announced yesterday a consultation on changes to employment legislation.

Mr Cable said that he wanted to help firms expand without making existing staff feel insecure, stating that the aim was to cut unnecessary bureaucracy and not to erode employee rights.

The key proposals include:

• A call for evidence on whether firms with 10 or fewer employees should be able to sack staff without their agreement and without risk of a tribunal if they pay compensation.
• A consultation on protected conversations which would allow employers to have frank discussions about poor performance with workers without fear that they could be used as evidence in a tribunal.
• A call for evidence on the length of time required for a consultation period on planned redundancies. Currently the length of time is 90 days, but the government is considering reducing that to 30 days.
• A requirement for all claims to go to the conciliation service ACAS before reaching employment tribunal.
• An examination as to ways to ‘slim down’ and simplify dismissal processes.
• Options for a “rapid resolution scheme” for more simple cases to be settled within three months.
• Creating a universally portable CRB check that can be viewed online from early 2013.
• Close a whistleblowing case law loophole which allows employees to blow the whistle about their own personal work contract.
• Publish a call for evidence on proposals to simplify the Transfer of Undertakings (Protection of Employment) – TUPE- rules which many businesses say are too complex and bureaucratic.

The changes have provoked a strong reaction from the Unions, with some commenting that the agenda is being driven by big business which wants the balance of power in the workplace tilted even more against the ordinary worker.