Making predictions should always be done with caution, but it is safe to say that over the next few years the legal pendulum will swing in favour of the employer and employer's interests will inform the legislation in this Parliament.
It is all down to the flatlining economy. The Government firmly holds the view that employment laws deter entrepreneurs and businesses from taking people on.
As part of the process of mitigating the effects of that perception by way of reform, numerous public consultation documents have been published over the past year such as 'Resolving Workplace Disputes'. The Government's response to those consultations together with proposals announced in the autumn have resulted in certain changes planned for this April.
Although no draft legislation has yet been published by the Government, it intends to change the law as follows;
- Increase the qualifying period from one to two years for ordinary unfair dismissal cases. Reportedly a source from BIS has revealed that it will not have retrospective effect and will only apply to jobs commencing on or after 6 April.
- Claims without reasonable prospects of success can be subject to Deposit Orders. In those circumstances Claimant’s have to pay a deposit before the claim can proceed. In April the amount of the deposit will increase from £500 to £1,000.
- Currently where legal costs are awarded to a party, the Judge can only order up to £10,000 to be paid without reference to a County Court for assessment. From April this figure will rise to £20,000.
- The widespread practice of witnesses reading their statements out loud under oath will finish. Statements will be “taken as read” from April.
- Under the current rules financial support for witnesses in the form of paying their expenses for attending a hearing is met by the Treasury. This practice will finish and be replaced by powers given to judges to order that the parties pay those expenses instead.
- Unfair dismissal cases are currently heard by an Employment Judge and 2 ‘lay’ members forming what is known as an industrial jury. From April, and for a review period of one year, it is proposed that the Judge will sit alone. Lay members will still be involved in other types of cases.
Looking forward to October the provisions of the Pensions Act 2011 will come into force which will require large employers to automatically enrol eligible jobholders into a pension scheme. The same requirement will affect smaller employers (fewer than 50 employees) from 1 May 2015. The sting for the employer is that it must make a contribution of 3%.
The author is a member of the Employment Lawyers Association consultation committee working on the introduction of Tribunal fees which the Government plans to put in to place by 2013 at the earliest. We will report again during the year about how various other Government proposals are progressing. We also have the mouth-watering prospect of a public debate over “no-fault dismissals” which will entitle employers to dismiss without giving a reason. Needless to say it is likely that this policy will grab the nation’s attention like no other employment law policy has for decades. Watch this space!
