January 31, 2011 3 Comments
There is little disagreement that the economic growth figures for 2010 Q4 were very poor. When set alongside the performance of other developed economies they look even more anaemic. The Government is promising that the 2011 budget will be a budget for growth. But the Government is already bringing forward more focused initiatives with the justification that they are geared towards fostering private sector growth. Most recently Vince Cable has announced proposals for changes to employees’ access to Employment Tribunals.
The core proposal is that a worker will need to have been employed for two years, rather than the one year at present, before they are eligible to take a case of unfair dismissal to an Employment Tribunal. Defending a case that goes to Tribunal is expensive for employers, on average it is estimated to cost around £4,000. The argument is that the expense and bureaucratic nature of the process can act as a deterrent to taking on additional workers, particularly for small businesses. Lifting this burden will, the Government hopes, encourage employers to be more bullish in expanding their workforce.
The Government is also concerned that there has been a dramatic increase in cases taken to Employment Tribunal. The total number of claims rose between 2008-09 and 2009-10 by 56 per cent to 236,000. The Government suggests that its new approach will also be more effective in dealing with weak and vexatious claims. There is, of course, an implication there that the recent growth in claims is stuffed full of frivolous claims.
But is that a sensible inference for us to draw? Read more of this post