Will the reform of the Tribunal System result in greater employment……maybe not?

Recent commentary in the press regarding the proposed reform of the tribunal system has probably caught the attention of most employers.

Vince Cable’s plans have been developing in order to reduce the threat of litigation for small businesses, in the belief that this will result in greater employment is commendable. However, Thomas Eggar partner Esther Smith struggles to see how this will be achieved by his proposals. Smith commented: “The imposition of a fee to commence a tribunal claim should reduce the number of claims submitted, but the increase in the qualification period for claiming unfair dismissal, from one year to two, is most unlikely to make any positive impact. Those people with between one and two years' service will still issue proceedings for other claims, such as discrimination or will try to argue that their dismissal falls within one of the categories for which no qualifying period of service is needed.” Smith also added: “The imposition of an obligation to use the services of ACAS may also result in a decrease in tribunal claims, but only because settlement of disputes is achieved earlier, before the employer has incurred significant costs. Previous attempts to use ACAS to reduce the burden on the tribunal system have done nothing to alleviate the problem.” -ENDS- WORDS: 210

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