12 May 2011 #Employment
The government announced yesterday that it will look at the case for employment law reforms in areas such as TUPE, discrimination compensation and collective redundancy consultations periods.
The Department for Business, Innovation and Skills (BIS) said it hoped to reduce unnecessary bureaucracy and help boost job creation by making employers more willing to take on staff. This could lead to a relaxation of redundancy rules. Currently, in a collective redundancy, employers cannot make workers redundant within 90 days of informing them that they are at risk. BIS is of the view that this time scale hinders employers` ability to restructure efficiently and those in financial difficulty worry about how long they need to keep paying staff after it has become clear that they need to let them go.
In addition, BIS hinted at capping discrimination awards to discourage people bringing speculative or vexatious claims. They said, employers have expressed concern about the high levels of compensation awarded by tribunals, which can lead to employers having to unnecessarily settle such claims.