We can expect to see a major shake up to some key employment laws over the next year or so. It is looking almost certain now that the Coalition will allow companies to dismiss during the first two years of employment without the fear of a Tribunal claim (rather than the current one year period).
The papers this morning are headlining the proposed ‘Employer’s Charter’ which will embody this change along with a fee for lodging a Tribunal claim and exclusions for smaller companies from certain provisions, such as the length of time statutory sick pay must be paid.
The idea is that this will encourage firms to take on workers without fear of reprisals or ending up stuck with employees they may later not want or need. The flip side of the coin, however, is the extension of the period of job insecurity for new employees. However, given this approach worked back in the 1980’3 and was linked to an increase in employment, it is likely it will be tried again soon.