Proposed Changes To Employment Procedures Under The Enterprise and Regulatory Reform Bill

  • Employment disputes will have to go to ACAS for conciliation before they can be heard by an employment tribunal.
  • A discretionary power will be introduced for employment tribunals to impose financial penalties on employers who lose cases. The level of penalty would be half of the total award made by the tribunal, with a minimum threshold of £100 and a maximum of £5,000 where there are ‘aggravating factors’. The penalty would be reduced by 50% if paid within 21 days.
  • Collective redundancy consultation rules to change , pending consultation until 19th September 2012
    • issue a new, non-statutory code of practice on how to conduct consultations
    • reduce the minimum consultation period for large scale redundancies (over 100 employees) from 90 days to 45 or 30 days
    • improve guidance for employers and employees on the support available from the government.
  • Whistle blowers loophole to close, where a complaint about an employee’s own employment contract is protected. Only those disclosures in the public interest will be protected.