Coalition Reviews Employment Legislation

The new government has announced an ‘immediate review’ of all employment legislation that has not yet hit the statute books; this is part of its wider plan to remove the excessive regulation that has been imposed on SME’s.

Currently there are nearly 250 business related regulations that it needs to carefully examine, and it is no secret that it wasn’t too keen on some of them in the first place. This does not mean that we can start celebrating straight away, some processes have been placed ‘on hold’ , such as the Vetting and Barring Scheme which was due to go live on 26 July 2010, but the other planned laws are still in the ‘pipeline’ and ready to become law. Now they have been put up for scrutiny, the government could decide to keep, alter or rip up some of them completely. There is no deadline for decisions but we will keep you posted.

The most immediate piece of legislation that will impact on all employers is the Equality Act which comes into force this month, but the government have already indicated that they will be making some changes; so we have to wait and see!!!!!!

Employment Tribunal Claims Hit All Time High

The recession has unfortunately brought about increasing numbers of redundancies and a significant increase in claims of unfair dismissal; there has been a 29% increase in these claims since 2008. It does not cost an individual anything to file a claim for unfair dismissal and we have moved to a culture where more people will try it on even when they have been treated fairly.

What to do if you receive a claim against you?

First of all don’t panic!

• Claims are lodged either online or by hard copy using a form ET1. These ensure that claimants set out all the details in a particular format. When the tribunal accepts it, you will be sent a copy; in addition you will receive a response pack, also known as an ET3.

• When you receive it, study what is alleged – many ET1s provide a lot of detail but in reality there is little substance. Speak to those involved and obtain witness statements as soon as possible, especially when all is still fresh in people’s memories.

• Go through your policies and procedures along with other relevant documentation; e.g. disciplinary history, appraisals, meeting minutes, sickness absence records; and in a redundancy situation notes made at consultation meetings. You will then have an opportunity to assess the validity of the claim.

• Carefully review the ET1, check for errors, (A simple mistake can render a claim invalid). If you spot errors point them out on the ET3 when you respond.

• It is important not to delay your response , you must file it within 28 days otherwise you risk a ‘default judgement’, whereby the employment judge (formerly called a Tribunal Chairman) will decide you are liable (without attending any hearing) and give a ruling on compensation. It is almost impossible to get these set aside, you must have very strong grounds and forgetting to file the paperwork is not one of them.

• You can file the ET3 by hard copy or online.

• If the case goes to a hearing you may need to consider having professional advice from those experienced in handling cases.

• Ensure all areas of dispute are dealt with in your written evidence

• ACAS will contact you almost as soon as you have filed your response and will seek to conciliate a solution without the case going to a full hearing. This can involve an out of Court settlement.

Many employers settle by making a payment, even though they have a very strong case, to avoid the hassle and the costs of going to a hearing.

If you use ACAS to conciliate in this way they will prepare a COT3 which is a legally binding ‘without prejudice’ document and, once agreed, the case is settled.

Remember that 80% of cases that go to a full Tribunal hearing find in favour of the respondent (that is the employer).

We would always recommend that you seek good professional advice prior to dismissing an employee for whatever reason, including redundancy. If the ex-employee does then make a tribunal claim, don’t panic and do seek professional advice from those experienced in handling these matters.

The HR team at Ward Goodman have the experience and the knowledge to help.

To find out more about any of these stories or Ward Goodman please contact 01202 875900