Government Looks to Reform Employment Tribunals and Launches ‘Employer’s Charter’

The Coalition Government is proposing reforms to address concerns raised by businesses that Employment Tribunals have become too costly and take too much time, placing unnecessary strains on small businesses. On 27 January 2011 the Department for Business, Innovation and Skills (BIS) launched a new consultation to improve the way in which workplace disputes are resolved, alongside an 'Employer's Charter'.

The key objectives of the proposed reforms are to:

• Help businesses feel more confident about hiring people;
• encourage parties to resolve disputes between themselves as early as possible; without having to go to an employment tribunal;
• make the tribunal process swift, user-friendly and more effective; and
• tackle weak and vexatious claims.

The proposals include raising the qualifying period for unfair dismissal to two years, introducing compulsory pre-claim Acas conciliation, charging claimants a fee, and wider powers to strike out a claim or order payment of a deposit. The limit on costs awards could be raised from £10,000 to £20,000, and employers who lose at tribunal may face not only damages, but a fine of up to £5,000 payable to the Exchequer. This consultation is the first step in taking forward the Government's review of employment law and it is keen to hear from all who are interested, in particular employers. The government has also launched 'The Employer's Charter.