Employment Tribunals - The Great Shake-up

The Government has recently announced there are plans to significantly shake up the way the current Employment Tribunal System operates. 

Consultations for the new proposals are being carried out at present and will end on 20 April 2011.

The Key Proposals

  • The qualifying period for employees to claim for unfair dismissal will now be two years as opposed to one;
  • All claims to be first lodged the Advisory, Conciliation and Arbitration Service to allow pre-claim conciliation to be offered.  It will then mean that both parties can make reasonable offers to come to an agreement and avoid a Tribunal hearing, considering other methods of early dispute resolution such as mediation;
  • Extending the jurisdictions where judges would sit alone.  This means that cases will be listed and heard a lot quicker; and
  • There will be a range of more flexible case management powers so that weaker cases can be dealt with in a way that is cost effective for employers.

The Ministry of Justice also wishes to bring in fees for Employment Tribunal cases and appeals; this is to ensure that users are making a contribution to the system.

What other changes do I need to consider?

The Tribunal will require more in depth information in the initial stages of a claim being made, reducing speculation over whether a settlement offer is the right course of action or to proceed to a Tribunal hearing.

Further to this, there is discussion about the payment of expenses being removed in order to encourage parties to either settle earlier or reduce the number of witnesses they call.  On the other end of the scales in contrast, it is instead being mooted that the Tribunal should introduce new financial penalties for employers found to have breached any employment rights on top of the current statutory award.  These incentives combined are theoretically designed to bring about settlement more swiftly and, should Tribunal proceedings be necessary, then they are minimal.

Other employment legislation is to be looked at over the next few months.  This is to include making the requirements for employers taking on new staff as simple and straightforward as possible.  The concept of an ‘Employer’s Charter’ being produced has been given some significant thought and is aimed at raising awareness and giving greater clarity to employers on their responsibilities and obligations when managing staff.

From an employee’s perspective…

The proposed changes represent the most fundamental changes to the Employment Tribunal system for years.

If they are implemented, they will come as a welcome relief for employers and the Tribunal system which has struggled to cope with the increasing year-on-year rise in Employment Tribunal claims.

The moves to cut down on weaker, speculative or vexatious claims will also be welcomed by employers and those involved in the Tribunal process.

Looking to the future

Some of the planned measures would require new legislation, and if the Government decides to take these forward, it says it will do so “when Parliamentary time allows”.

Other measures could be taken forward under existing powers to make secondary legislation or rules, subject to further consultation where appropriate.