Business Secretary Vince Cable has unveiled a number of proposed changes to employment law, in an attempt to cut unemployment levels and boost the economy.
The controversial concept of "no-fault sackings" recommended in a report compiled by venture capitalist Adrian Beecroft has been abandoned after a lack of support. However, in an effort to increase the number of disputes being resolved outside of the Tribunals, employers will be given a legal right to offer settlement agreements to employees who are under-performing. Mr Cable also intends to consult on plans to dramatically reduce the current £72,300 cap on unfair dismissal pay-outs to a maximum of 12 months' salary.
Other proposed measures include the introduction of stricter tribunals (meaning weak claims should be thrown at an earlier stage) and the introduction of fees for employees bringing a case.
These proposals are likely to be dubbed as the biggest reform of employment law for many years and will no doubt face stiff opposition from many, including trades unions. Consultation in relation to these measures will begin shortly.
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