Chris Leitch: Fairness in workplace is at heart of planned reforms

UNION leaders claiming that the government’s proposals to “shake up” employment law are a charter for bullies should think again.

The radical changes put forward by Vince Cable also include the possibility of a “tax” on bad employers.

The government has set out its aims to reduce the number of employment disputes reaching tribunal.

Plans to simplify settlement agreements, removing the need for extensive legal representation for both employee and employer and introducing more mediation and “protected conversations”, should help to avoid distressing court battles.

The UK government predicts a reduction of 3-5 per cent in the number of unfair dismissals coming before an employment judge. This is not vast and suggests that extending the qualifying period for making a claim from one to two years of employment will not see a massive shift in favour of the employer.

Instead, because tribunals can be both stressful and expensive for both parties, the proposals should be embraced and welcomed.

Furthermore, the government proposes fines of up to £5,000, in addition to any financial award ordered by an Employment Tribunal, to be imposed on an employer found guilty of unfair dismissal. Average tribunal awards currently range from around £9,000 for unfair dismissal through to over £30,000 for age discrimination.

The move may well see weaker cases settled before reaching a tribunal and will certainly penalise those companies that fail to ensure their employment practices are up to standard.

Employers face one-off administration costs totalling £4.9 million to bed in the new regulations according to government calculations. They may also have to reimburse witnesses who used to be able to claim from the tribunal, estimated at £200,000 per year.

Ending an employment contract should never be a simple or thoughtless process; regulation can make it as fair as possible.

• Chris Leitch is a senior associate at Tods Murray LLP