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Employment law changes could be rolled out early, BIS confirms

Certain employment law provisions contained within the Enterprise and Regulatory Reform Bill are set to come into play outside of the traditional commencement dates.

 

The bill – introduced by The Department for Business, Innovation and Skills (BIS) – will include changes aimed at improving the employment tribunal system, alongside the implementation of a directive which will give shareholders binding votes on directors’ pay. The bill will also allow for the creation of the new Competition and Markets Authority whilst abolishing the Competition Commission and the Office of Fair Trading. It will also make provision about the reduction of legislative burdens, copyright and about the creation of the UK Green Investment Bank.

 

“The measures in the Enterprise and Regulatory Reform Bill will help make Britain one of the most enterprise-friendly countries in the world. It will improve our employment tribunals, reform and strengthen competition enforcement, scrap unnecessary red tape and help ensure that people who work hard and do the right thing are rewarded,” Business Secretary Vince Cable said of the bill.

 

Changes to employment law have traditionally been introduced on 6 April and 1 October each year, allowing employers to plan for the upcoming changes. However, the BIS has now confirmed that the provisions relating to settlement agreement admissibility look likely to be introduced earlier than previously thought, and outside of the common commencement dates ‘where there is a business benefit for doing so.’

 

Other provisions – including those relating to the proposed reduction in the compensatory award given for unfair dismissal – could also be rolled out early, the body said.

 

However, some believe that plans to move away from the traditional dates could lead to confusion for businesses across the country, making it more difficult for employers to implement the changes and to ensure that their policies and procedures are compliant.

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