Sacking laws may be relaxed for smaller businesses

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The Business Secretary Vince Cable is due to announce that the coalition government has agreed to employment law reforms.

Companies employing fewer than 10 staff could be exempted from employment regulations under a consultation to be announced on Wednesday, in an attempt to promote economic growth.

The proposals to relax the rules for ‘micro companies’ are expected to be announced by business secretary Vince Cable as the government accepts a recommendation on employment law from the venture capitalist Adrian Beecroft.

In a speech on Wednesday Vince Cable will say that the coalition has agreed other areas of employment law reform to include: –

  • A consultation on introducing “protected conversations” to allow employers to discuss an employee’s poor performance or retirement in an open way that could not be used in a tribunal claim.
  • An overhaul of tribunals that would mean all claims initially go to the Advisory, Conciliation and Arbitration Service. Witness expenses would be ended and only one judge would be used in unfair dismissal cases.
  • A further consultation on simplifying the use of compromise agreements in which employers pay an agreed amount to an employee if both sides agree that a contract of employment should end.

These proposals will hopefully result in a much simpler system for employers and employees making it easier for businesses when taking on, managing and letting go of their staff.

If you or your business has any employment queries, then please contact Elaine Smith (01903 706966) or Hannah Bennett (01903 706972)