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Posted by on in Unfair Dismissal
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Government publishes proposed employment law changes

The Government has published proposed employment law changes that aim to simplify and speed up the process of ending the employment relationship when it breaks down, for the benefit of both employers and employees.

The package of employment reforms includes:

  • a consultation on settlement agreements that will set out how the process will work in practice. The consultation provides a template letter and guidance on how employers and employees would reach agreement. Acas has also agreed to provide a new code of practice for settlement agreements.
  • unfair dismissal claims consultation to look at the potential for reducing the compensation cap, currently at £72,300. The two proposals are a cap of up to 12 months pay and a new, reduced, upper limit.
  • further streamlining of employment tribunals, following on from Justice Underhill’s review, with a consultation including proposals on how judges could dismiss weak cases more easily and reduce the number of preliminary hearings;
  • a summary of responses to the call for evidence on changes to TUPE with a commitment to consult on issues, raised by business, by the end of the year; and
  • a formal response to the call for evidence on proposals for compensated no fault dismissal for micro-firms and the Acas code on discipline and grievance. Based on the evidence presented by business the Government will not be taking forward the proposal on no fault dismissal, but will work with Acas to make the guidance to their code more accessible, especially for small businesses.



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