The coalition government has been saying for some time it believes these new rules will make it easier for employers to hire staff without the difficulties of the minefield of employment laws they might have to deal with. Indeed, the CBI at the time the reforms were put forward said it was a move in the right direction and should give employers confidence to take on more staff. Businesses up and down the country will welcome the changes.
It cannot be said there is universal approval for these changes, with some commentators saying there is no reason to suggest the increase in qualifying period will actually help to create jobs or reduce burdens on business. It may well help to keep the costs down in funding the tribunal system, with the burden on the claimant in bringing a claim.
The new rules will replace the one-year rule introduced by the Labour government in 1999; it had previously been two years, brought in under the Conservative government in 1985. The new rules will not be retrospective and the myriad of discrimination laws that have no qualifying length of employment rights will not be changed.
So what will this mean?
This means that employees that were employed before the 6 April 2012 will still be able to bring a claim for unfair dismissal with a qualifying period of one year.
It is expected that the number of unfair dismissal claims to the employment tribunal will fall initially; however, paradoxically, this may mean a jump in discrimination claims. Only time will tell.
Employers should take heart that in these harsh economic times they will have less fear about dismissing employees than they previously might have done; this is especially so for small employers.
Will the HR departments be mothballed?
Unlikely. Claims may fall, but workplace mediation is likely to rise significantly. Therefore, for those who have not been on a mediation course, now would be the ideal time to do so, as both employees and employers will be actively encouraged to use this process before a claim is brought to the tribunal. The Acas mediation scheme is likely to be very active also. This should keep the HR professionals just as busy, if not more so.
Lee Xavier is head of employment law at Bevans London
