01 February 2011 #Employment
Despite the Coalition`s recent Employer`s Charter designed to redress the balance of employment legislation in favour of businesses, it now appears to have undermined many of its pledges.
The Government has introduced a new proposal to fine employers 50% of the total compensation award, over and above the payout to the Claimant, if employer`s are found to have breached an individual`s rights. The fine, which is essentially a tax on businesses that make mistakes, would most likely be limited to a maximum of £5000 and could be reduced to half if the employer paid within 21 days.
Although the proposal would most definitely result in fewer tribunal clams, this is likely to be more to do with employers being unwilling to risk the costs of a fine, as opposed to the actual merits of the Claim.
Whilst David Cameron talks of a ‘pro-business, pro-growth` agenda, many businesses will be of the view that the only growth will be with the Exchequer.