Thursday 12 April 2012

Government’s employment law reforms take effect


The Government’s changes to employment law came into effect recently. One effect of this is that employees will not be able to claim for unfair dismissal unless they have been with their employer for two continuous years.

This means that the qualifying period for claiming unfair dismissal has effectively been increased by one year. The Government hopes that this will boost the economy and work as an incentive for employers to take on more staff.

However, union representatives strongly disagree. Brendan Barber, the General Secretary of the Trade Union Congress (TUC), said that the new policy is likely to have negative effects on the economy.

“The Government's proposals to weaken unfair dismissal rights risk generating a hire-and-fire culture in the UK and will lead to the creation of insecure employment which is here today and gone tomorrow.

“Cutting back on protection against unfair dismissal will do nothing to boost the economy. If people are constantly in fear of losing their jobs it will lead to even less consumer spending, and losing your job is one of the worst things that can happen to anyone, especially when unemployment is so high.

“Businesses have told the Government that above all they need the economy to be growing and the banks to get lending again. The Government appears to be reacting to pressure from backbench Conservative MPs rather than actual business concerns.”

The Department for Business insists that the move will allow employers to employ more staff as they will not be discouraged by fears of being taken to court.

TUC remained concerned that the policy will disproportionately affect those engaged in part-time and temporary employment, who may end up without any protection from unfair dismissal.

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