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Employment law changes 'to ease burden on businesses'

Posted: 10th October 2012   In: Business Employment

The Government has announced a series of employment law changes designed to reduce the burden on businesses while retaining reasonable protection for employees.

Ministers are planning to reduce the compensation cap for unfair dismissal claims, reduce the number of vexatious claims and promote the use of settlement agreements. However, they have decided against introducing compensated no fault dismissal.

The proposals, which are subject to public consultation, include:

The Government also says that it will provide:

Business Secretary Vince Cable says the steps will benefit small businesses. He said: "We have been looking across the range of employment laws with a view to making it easier for firms to hire staff while protecting basic labour rights.

“We acknowledge that more can be done to help small companies by reducing the burden of employment tribunals, which we are reforming, and moving to less confrontational dispute resolutions through settlement agreements."

We shall keep clients informed of developments.

Please contact Robert Bedford if you would like more information about the issues raised in this article or any aspect of employment law.