Radical revamp of employment law

BUSINESS Secretary Vince Cable will say that the “most radical reform package for decades” will ease the duties of firms when they recruit, manage and let staff go, while being “fair” to workers.

The minister will also call for evidence over the current 90-day consultation period on redundancies, with the possibility of reducing this to 30 days.

The government said evidence suggested the 90-day period was too restrictive for companies and did not give them enough flexibility with their business plans.

A package of measures published yesterday included plans for all claims to go to the conciliation service Acas before reaching an employment tribunal, options for a “rapid resolution scheme” to offer cheaper, quicker decisions on more straightforward claims, and a regional pilot scheme for smaller firms to use mediation.

Mr Cable will also confirm plans to increase the qualification period for making a claim from one to two years of employment from next April, and a consultation on “protected conversations” to allow employers to discuss issues such as retirement or poor performance without it being used at a subsequent tribunal claim.

The government believes the reforms would deliver more than £10 million of savings and benefit employers to the tune of £40m.

A Business Department spokesman said: “This is the most radical shake-up of the employment law system in decades. The UK has one of the most flexible labour markets in the world, but we want to make sure that the rules are fit for modern workplaces.

“We need to make the system simpler. This package will make it easier for businesses when taking on, managing and letting go their staff, while also being fair to workers.”