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Osborne announces Employment Law Reforms

Chancellor George Osborne has announced plans to reduce the number of employment tribunal claims and boost the economy, with two major changes proposed today.

His first proposal concerns changes to unfair dismissal rules, which he feels could save nearly £6 million a year for British business. The qualifying period for unfair dismissal will be increased from one year to two years with effect from 1 April 2012.

His second proposal would see fees introduced for tribunal claims. Although not confirmed, it appears that a fee structure would apply along the lines of:

  • upfront fee of £250 when lodging ET1;
  • further fee of £1,000 payable by Claimant when the hearing is listed;
  • higher fees if the claim is for over £30,000;
  • fee to be refunded if Claimant wins, and forfeited if they lose
  • fees to be waived for those with no money

Full details will be confirmed as soon as possible.

Further information can be found on http://www.guardian.co.uk/politics/2011/oct/03/george-osborne-plan-angers-unions?newsfeed=true

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