The Government has announced a series of key changes to employment law under the newly passed Enterprise and Regulatory Reform Act 2013.
Amongst the most important changes – some of which will be rolled out as early as June of this year – are amendments to the employment tribunal procedure. The Act will ensure improved dispute resolution through a simplification of the procedures and costs relating to tribunals.
Other changes relate to whistleblowing disclosures, which, in a change to the Employment Rights Act 1996, will no longer be protected unless the employee believes that it is “in the public interest” to do so. There will also be changes made to the ‘good faith’ requirements linked to the disclosures.
As of June this year, unfair dismissal claims will no longer be subject to a two-year qualifying period in cases where the dismissal reason is linked to the political opinions of the employee.
Other key changes due to come into force in either October of this year or April 2014 include a repeal of a specific section of the Equality Act 2010, which currently makes an employer liable in instances where an individual suffers harassment by a third party, and the award of binding votes on the pay policy for shareholders.
Compromise agreements will also be renamed ‘settlement agreements’ under the Act, in a bid to encourage parties to settle employment disputes. A code of practice which sets out the methods for using settlement agreements will also be introduced.
Business Minister Jo Swinson said that the measures contained in the Act will “support the UK’s enterprise culture and help make it one of best places to do business.”
She added: “It will put in place fairer systems for directors’ pay, create a world-class competition regime, support the Green Investment Bank and improve our employment system. This will help businesses to start up, grow and employ more people.”
The Department for Business, Innovation and Skills will publish a detailed implementation timetable listing when the changes will take place in the coming weeks.