Against an increasingly challenging global economic situation, members are unfortunately becoming more concerned about the security of their jobs. In the last few weeks, two thirds of all calls to the free Legal Helpline run by the Institution’s appointed legal partner Purple Legal, were from members concerned about employment law issues. Here, Natasha Jones, employment lawyer and Partner at Purple Legal, discusses proposed changes to employment law due next year, and the free advice on employment law available for Institution members right now.
In an attempt to make it tougher for employees to bring unfair dismissal claims at the Employment Tribunal, the Government proposes next year to extend the length of employment required to bring a claim. The qualifying period for the right to claim unfair dismissal will be extended from one to two years on 6 April 2012. The Government’s announcement pre-empts its response to its consultation ‘Resolving Workplace Disputes’, which proposed the increased qualifying period.
Natasha Jones, employment lawyer and Partner at Purple Legal explains the legal principles behind the reforms and the thinking behind the proposed change in the law: “The Government claims that increasing the period to two years, combined with other proposals in the ‘Resolving Workplace Disputes’ consultation, should see the number of unfair dismissal claims drop by around 2,000 per year.”
“Other proposals set out in the consultation included a fee for lodging tribunal claims. In his speech to the Conservative party conference in Manchester, the Chancellor of the Exchequer indicated that such a fee will be introduced from April 2013. Currently an employee can lodge a claim for free whereas the employer incurs costs in the time and money incurred in defending a claim which may be without merit or vexatious.”
While business groups have welcomed the move, some commentators have expressed concern that the change may lead to an increase in the number of discrimination claims, for which there is no qualifying period. Natasha cautions businesses of the mistakes that are often made when firing people.
“Most people have watched The Apprentice and have seen Lord Sugar firing people with a frightening finger, or Donald Trump with an intimidating voice. Unfortunately, it is one of the unpleasant realities of running a business that occasionally an employee relationship breaks down.”
“In most situations, dismissing someone should be a sequence of legal and logical steps, rather than something that comes as a shock to the system. If it comes as a ‘bolt from the blue’ to the employee, then an employer probably hasn’t followed the correct procedures which could result in the employee claiming substantial compensation.”
In addition to highlighting this proposed change to employment law next year, Natasha was very keen to address members’ more immediate concerns about employment law right now and how Purple Legal can help members who sadly are affected by redundancy.
She said: “The combination of economic downturn and cuts to the defence sector in particular mean that the impact will not only be felt by employees of big engineering companies losing their jobs, but will have a knock on effect throughout the manufacturing supply chain as demand for production and manufacturing suffers a considerable blow. It has been calculated that for every job lost in a big engineering company, there are at least another four elsewhere that are directly related to it.”
“As the knock on effects are felt throughout the supply chain, it leads to a rather bleak forecast that redundancies may be inevitable in those companies that are members of the Institution, particularly those that depend on big engineering employers and a healthy government defence budget for survival.”
“Purple Legal advises that all employers and employees that will be affected by defence cuts, falling demand for supply and production, should seek professional advice about redundancy as an option in particular how the process should be initiated and managed.”
“Redundancy may be inevitable. Purple Legal says that both parties need to fully understand employment law terminology – including ‘consultation’ selection criteria’, ‘redundancy’, ‘dismissal’ and ‘suitable alternative employment’ and the various elements involved in the process to ensure it is legal, fair and is managed appropriately to ensure the best outcome for the employees and the employer in terms of business efficacy.”
Purple Legal’s specialist employment lawyers have years of experience of guiding businesses and workers through the minefield of information on redundancy and advises that consultation is a vital part of the redundancy process. This is where an employer consults a member of staff before they have been selected for redundancy. There are specific procedures to follow if more than 20 employees are made redundant as representatives also need to be involved in consultation.
Natasha said: “At a time of mass redundancies, Purple Legal stresses that understanding employment rights and the key legal issues is more important than ever.”
“We know that there is worse to come in the next few months for Institution members, as the knock on effects from large scale redundancies and government defence budget cuts are felt along the supply chain, and the sector will be reviewing its staff needs.”
“What employers need to remember is that there is a complex legal process for making people redundant.
“Purple Legal’s key message to employers during redundancy is to ensure they offer consultation on an individual basis; speed up the process instead of dragging it out; and maintain a process that is objective and fair, and transparent.”
She concluded: “The employer in control of a redundancy situation can move forward to become a stronger and leaner business. Likewise, an employee that manages a redundancy situation effectively can use the circumstances as an opportunity for a change and a fresh start in their career.”
Free and confidential help is available for members from Purple Legal. For more information and to book a SolicitorSlot to get free legal advice contact: