The Government has recently published a consultation paper which includes a range of measures the objective of which is to halt the significant increase in claims coming before the Employment Tribunal.

This is being marketed by the Government as a boost for SME’s  who have, it is thought, been reluctant to offer employment for fear of such employment ending up with a time consuming and costly tribunal claim (it is estimated that, on average,  defending a tribunal claim costs a business in the region of £3,800).

The proposed measures include the following: -

• Introducing a two-year qualifying employment period for bringing an unfair dismissal claim (it is currently one year);
• Introducing a fee for bringing a tribunal claim, to discourage unmerited or vexatious claims; and
• Using ACAS to screen claims and encourage mediation.

Whilst it remains to be seen whether these measures survive consultation and make it through to the statute book, it is at least some recognition that the Government understands the pressures being put on SME’s in the current climate and is prepared to try and do something about it (we will leave it to you to decide whether this genuine and/or too little too late).

If you require any advice in respect of employment issues, the DTM Legal employment team will be glad to help.