Recent attempts by the government to reduce red
tape for small businesses has seen the qualifying time for presenting
claims for unfair dismissal rise to two years and a rule that claimants
will have to pay costs when trying to bring their case to court.
The idea is that fewer frivolous cases will be brough forward if the
claimant has to pay an upfront fee of £250 with the ET1 and a further fee
if the claim is accepted of £1,000 which could rise to £30,000. The fees
will of course be returned if the claimant wins their case.
Abigail Morris, British Chambers of Commerce (BCC) policy adviser, said:
"The BCC strongly supports proposals to reduce the number of weak and
vexatious claims in the tribunal system. Introducing fees will not put
off genuine claimants but will free firms from dealing with unmeritorious
claims. Firms are nervous about taking on extra staff members in an
uncertain economic climate. Complex and burdensome dismissal rules
increase the 'fear factor' that if it doesn't work out with the employee
- for whatever reason - the firm will either have to keep employing the
individual or risk a tribunal."
Union general secretary Len McCluskey said "At a stroke of a pen,
following a fraudulent consultation exercise whereby employers could
'vote' for their least-liked laws, a key defence against mistreatment is
taken away from workers. And the Government does not even have the
decency to announce this properly. How can this be in 2011?"
It is thought that although these changes will have some impact on the
number of unfair dismissal claims on the grounds of race, sexual
orientation, religion or disability, it is not thought that these will be
dramatic.
The governments objective is to encourage employers to recruit more staff
but it has been suggested that increasing the qualifying period to 2
years will be indirectly discriminatory against women who tend to have
shorter employment periods.
The obvious problem of introducing fees is how legitimate claimants are
going to finance the claim given that they will probably be out of a job,
have little or no money at the same time as the government is cutting
availability of legal aid as part of it's cost cutting program.