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Employment Law Newsflash

Proposed changes to employment legislation were discussed in the House of Commons late last week.  During the debate a number of the more contentious proposals that had previously been discussed were considered.  
 
Vince Cable, Secretary of State for business, innovation and skills, announced that the Government would not be pursuing Adrian Beecroft’s compensated no fault dismissal proposal.  These proposals would have allowed micro firm businesses with fewer than 10 employees to dismiss a member of staff where no fault is identified on the worker’s part by paying a set amount of compensation.  
 
Vince Cable also announced that appropriate legislation would be brought to introduce ‘settlement agreements’ in July 2012.  These agreements would allow employers to make an offer of a termination package without fear of the offer being raised in a Tribunal claim.  As you are aware, if an employer introduces a termination package under current legislation without there being a dispute between the parties, the employee is able to rely on that termination proposal as evidence of constructive unfair dismissal.  
 
Once the details of this proposal together with confirmation of the protection offered to the employers are confirmed we will update you further.  
 
There is no change to current legislation at this stage. 

E Bulletin courtesy of mfg Solicitors


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