Thursday, November 24, 2011

Employment law: what the changes could mean in the workplace

A loss of unfair dismissal rights, changes to tribunal entitlement, and faster lay-offs are among the reforms proposed

Why does the government want to alter the employment laws?

The idea is to make it easier for businesses to hire, manage, and sack staff.

Will it be easier for my employer to dismiss me?

Yes, from April 2012 you will not be entitled to make a tribunal claim against your employer unless you have worked with that employer for two years (an increase from the current one year, though this would not apply to discrimination cases).

At the moment employers cannot dismiss you for poor performance without following a strict process: failure to do so without good reason could lead to a successful claim for unfair dismissal against the employer.

The government has said it is looking at a proposal for "micro-firms", employing 10 workers or fewer, to be able to bypass this process and sack employees via a compensated "no-fault dismissal" process.

Employees subject to this would receive basic redundancy pay and notice. This remains a proposal only, at present.

Lobbies for business interests say this procedure, first floated in a controversial report by the venture capitalist Adrian Beecroft, would enable firms to save costs and boost the economy.

Others say that to remove unfair dismissal rights like this is unnecessary and that there is no evidence it would improve the labour market. Nick Clegg and Vince Cable have in the past fallen into the latter camp.

What is the present dismissal process for underperformance?

Formal action starts with a meeting between you and your employer, for which you should be notified in writing of any performance issues and what the sanction might be. You are entitled to reasonable time to prepare your case, and to union or other representation at the meeting.

After the meeting your employer should tell you in writing if disciplinary action is to be taken and, in most cases for poor performance, you should be given a first written warning.

You should be given a specified time to improve, and provided with support and training if necessary. You have the right to appeal against the disciplinary action.

If there is no subsequent improvement in your performance, then further disciplinary action can be taken, which is usually another meeting, and a second and final warning.

If there is still no improvement, an employer can dismiss you but you have a further right of appeal.

What are protected conversations?

The government wants to enable employers to have frank conversations with employees about performance or ongoing employment issues without fearing words spoken will be used to back a constructive dismissal claim. The government is to consult on this, but critics believe protected conversations could create more legal disputes and confusion.

What if I want to take my employer to a tribunal over unfair dismissal?

The government is introducing a measure which would mean all such claims, prior to a claim in an employment tribunal, would be first referred to the conciliation service ACAS.

The hope is that many claims could be resolved before the tribunal stage.

There is also a plan for a fundamental review of employment tribunal rules of procedure. This would include deciding whether a deposit should be paid to the tribunal before you bring your claim, and whether you should pay further costs.

At present, there is no requirement for a deposit and costs orders are very rare.

Will the law changes make it easier for my employer to make me redundant?

Potentially. An employer ? under the proposals being considered ? would only have to give 30 days' consultation over large-scale staff redundancies instead of the existing 90 days.

Why else should I be concerned about these law change?

The existing unfair dismissal process gives you valuable rights and there are many reasons why these should not be brushed aside.

The "underperformance argument" is often unfairly levied against employees: for example, where individuals are singled out against a background of similar underperformance by others; where employees are unreasonably overworked and set unrealistic targets; and where employers provide insufficient training, support or resources.

In other cases there are personality clashes between line managers and their staff, which, in turn, can often lead to unjust underperformance allegations.

Philip Landau is an employment lawyer at Landau Zeffertt Weir


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Source: http://www.guardian.co.uk/uk/2011/nov/23/employment-law-changes-mean-workplace

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