Government launches review of TUPE, compensation for discrimination
The government has extended its review of employment law to include areas such as the Transfer of Undertakings Protection of Employment Regulations (TUPE), compensation for discrimination awarded by employment tribunals, and collective redundancy consultation periods.
The Department for Business, Innovation and Skills said TUPE offered important protections but some businesses felt it was “gold plated” and overly bureaucratic.
On compensation for discrimination, the Department said: “There need to be remedies for discrimination, but employers have expressed concern about the high levels of compensation sometimes awarded by Employment Tribunals in cases of discrimination – and the lack of certainty they have about the level of award they may be required to pay.
“Compensation levels for cases of discrimination are unlimited and employers worry that high awards may encourage people to take weak, speculative or vexatious cases in the hope of a large payout. This can lead to employers settling such cases before they reach a Tribunal.”
Employers have also expressed concern that the current requirement that consultation over collective redundancy runs for a minimum period of 90 days hindered their ability to restructure efficiently and retain a flexible workforce, DBIS said.
“Employers in financial difficulty worry about how long they need to keep paying staff after it has become clear that they need to let them go. They also claim it is not clear from the legislation at what point consultation on redundancies should start or end.”
In a speech to the Institute of Economic Affairs, Employment Relations Minister Edward Davey said: “The areas we are reviewing are priorities for employers. We want to make it easier for businesses to take on staff and grow.
“We will be looking carefully at the arguments for reform. Fairness for individuals will not be compromised – but where we can make legislation easier to understand, improve efficiency and reduce unnecessary bureaucracy we will.”
DBIS said it wanted to ensure that the regulations were fit for purpose, and stressed that legislation would not necessarily be the route to implement any change if there was a case for reform.
The employment law review has already led to consultations (now closed) on simplifying the Employment Tribunal system and extending the period before an unfair dismissal claim can be brought.
DBIS has commissioned – jointly with the Department of Work and Pensions – an independent review of the system for managing sickness absence. It has also launched a review of the compliance and enforcement regimes for employment law.
The government will next week launch a consultation on plans to extend the right to request flexible working to all employees and introduce a new system of shared parental leave from 2015.
