News & Insights
Employers charter is a boost for business
Partners at Latimer Hinks Solicitors are welcoming the launch of the Government’s Employer’s Charter, aimed at clarifying businesses’ rights and responsibilities.
Tribunals, particularly vexatious cases, cost time and money, and can place a strain on a workplace, with a negative effect on morale.
Among the points on the Charter, launched by Business Secretary Vince Cable on Thursday, is that a worker wishing to claim unfair dismissal will have to have been with a company for two years, rather than the current 12 months.
In addition, the Ministry of Justice will consult in the spring on the introduction of fees for any tribunal claim, which potentially could stop free claims by employees.
Other changes being proposed are that all unfair dismissal clams should first go to the Advisory, Conciliation and Arbitration Service (Acas) to try conciliation first.
Nick Poole and Mark Gardner are partners who deal with employment law at Latimer Hinks Solicitors.
Nick said: “There is a perception that current employment law, in the area of tribunals, is weighted too heavily in favour of employees. With the Employer’s Charter, this will be clarified and even strengthened in favour of businesses.
“While it is right that tribunals are there when required, the Charter will cut down on vexatious claims and the extension of the qualifying period adds a buffer for employers, putting them in greater control of who they employ.”
Mark added: “The Charter will also clearly set out that employers have responsibilities and rights, tackling this myth of a one-way tribunal system, and those who abide by these will avoid actions that can unsettle their business.
“However, if a cost is introduced to make a claim this not only will reduce the number of cases, it could also act to strengthen a claimant’s position, because the tribunal will be more likely to recognise the commitment to the claim.”
