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Employment Law: The Ultimate Political Football

Over the last few weeks, there has been wide spread media coverage of both the party conference of main political parties and the start of the new football season. Depending on your point of view and interest one may be more significant that the other. In terms of the political matters, central to any party’s manifesto at the next general election will be Employment Legislation.

You only have to look at the various changes which have occurred over the last 12 months in the Employment Law sphere to realise the significance of this area: collective redundancy consultation involving 100 or more employees reduced from 90 to 45 days; cap on compensatory awards of £74,200.00 or 52 weeks’ pay (whichever is the lower) for all ordinary unfair dismissal claims when the date of dismissal is 29 July 2013 of after; and the introduction of fees into the Employment Tribunals system.

Furthermore, there are even more changes expected in early 2014 including mandatory early ACAS conciliation; changes to the Transfer of Undertakings (Protection of Employment Regulations; imposition of financial penalties on employers who lose a claim at the Tribunal. at the discretion of the Tribunal between £100 and £5,000.00.

Above are just some of the different employment law changes which have come into force over the last 12 months and which are also expected to be introduced next year. It is an indication of the significant and rapid changes which are often introduced to employment law at the behest of the party in government. Before Labour came to power under Tony Blair in 1997 employees were required to satisfy a two year service qualifying requirement in order to bring a claim for ordinary unfair dismissal. When Labour took power they reduced this qualifying service requirement to 1 year. The present Government has now again reverted to the position circa 1997 on this particular point with the added changes of fees and lowering the cap on unfair dismissal compensation.

The long and the short of it is that employment law could easily be compared to a political football which is kicked from one side to the other effectively and literally between the ‘Right’ and the ‘Left’. This means that from both the perspective of an employer and an employee that there is a constant need to revisit employment law to find out what has changed. This can only lead to more uncertainty in terms of the effect these constant changes have on the nation’s workplace.

What is certain is that this perennial game of football in the field of employment law will continue and that, whilst it may appear at this stage, that the employer holds a 3-1 lead it is perhaps inevitable that if Labour does win the next General Election that many of the changes outlined above will be repealed (or, as a minimum, significantly changed) and that the balance of power in the workplace (and in this metaphorical football match) will revert back to a score of possibly 3-3 between the two teams or even a slender lead to “Team Employee”.

Whatever happens both employers and employees have no other choice but to keep abreast of all the constant developments in this ever changing and complex game of Employment Law.

Nick Smith

Partner, Employment and Pensions

Mincoffs Solicitors

This was posted in Bdaily's Members' News section by Claire Fenwick .