Duncan Lewis

Family Law

know matters can be both

highly sensitive and confusing

A bill to give employers a high hand over his employees making it easier and cheaper to sack

Date: (25 March 2013)    |    

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The changes is going to come after The Enterprise and Regulatory Reform Bill would be put forward by business secretary Vince Cable as a measure to help British business and to make Britain more enterprise friendly.
Mr Cable said that right conditions were need of the hour to encourage investment and exports, boost enterprise, support green growth and build a responsible business culture. It would encourage hard working people to work hard do right and then be rewarded.
And those staffs who think that they were subjected to unfair dismissal would find it more difficult to get redress. Among the changes would be a cap on compensation for unfair dismissal and the introduction of charges for bringing a claim.
The limitation period for filing an unfair dismissal claim by an employee has been increased from one year to two meaning he / she has to work for two years before being eligible to claim against their firms.
The bill would also ensure that the consultation period where 100 or more employment redundancies are being made would be halved from 90 days to 45 days.
The proposal to cap payouts means there will soon be a limit of 12 months' pay or £74,200, whichever is the lower. Employment lawyer of a law firm says that this could affect everyone who has a claim for unfair dismissal.
Those on the average pay will see far less, and those on higher pay will bust through the cap sooner than 12 months.
Although on average a settlement for unfair dismissal is far less than the cap, the bill also allows the cap to be lowered in future, to between £25,882 – the current average annual salary – and £77,646.
The filing of a claim at the tribunal was free but now the worker would have to pay and the proposed new fee would be £250 for lodging a standard claim and a further £950 if it goes to a hearing.
For someone who has lost their job, the total £1,200 may be a serious hurdle, especially as it comes as help with legal fees is being drastically scaled back.
Legal experts have different opinions on the issue with one saying that the workers should seek advice before filing a claim but other expert says that it would stop vexatious claims from those wanting to get a settlement by going to the tribunal as a threat.
The changes will help employers get rid of staff without having to go through a lengthy formal process. As it has been summed up by an expert the pendulum has definitely swung too far back in favour of employers and over time they would realise how much power they have.