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In November 2011 the Government announced plans to reform major areas of employment legislation following consultation on employment disputes and the results of the 'Red Tape Challenge Review'. This included proposals and commitments to change legislation for amongst other things:

• Introducing a compensated no fault dismissal process for employers with less than 10 employees
• Simplifying dismissal procedures including a review of the Acas Code on discipline and grievance or providing further guidance for small employers
• Introducing fees for submitting employment tribunal claims
• Simplifying Transfer of Undertakings Protection of Employees Regulations 2006
• Extending the right to request flexible working to all employees
• Increasing the qualifying period for unfair dismissal from one to two years

It has now been confirmed that the employee qualifying period to bring claims of Unfair Dismissals will increase from one to two years as of 6 April 2012. The Department for Business Innovation and Skills has suggested that the increase will not be made retrospective and employees commencing work prior to 6 April 2012 will still only have to reach one year's qualifying period; however this is yet to be confirmed by the Government.

Many of the other proposals that were put forward have already begun consultation processes, details of which are beginning to emerge. In particular the consultation on the introduction of fees for lodging employment tribunal claims commenced in December and is due to close on 6 March, with fees expected to be introduced in April 2013. The Government has put forward two options which differ in the amounts and points at which fees should be paid. The Government has stated that this approach is being considered to both ease the cost burden of the employment Tribunal process on the tax payer, which is currently an annual bill of £84 million and to ensure that parties consider whether disputes may be settled at an earlier point before formal legal action commences.

Further details on the outcomes of the consultations and proposals will emerge in the coming months.

In preparation for the October 2012 changes on Pensions Auto Enrolment the Department for Work and Pensions has revised the timetable for employers on when the auto enrolment must commence. In November it was announced the small businesses would be given more time to prepare for auto enrolment in light of difficult economic conditions. All existing businesses must have auto enrolment in place by April 2017. More information is available on the Department for Work and Pensions website.

If you'd like more information about this news bulletin and how it will affect your business, please call us today and speak to an Abbey HR Consultant on 0845 076 2288.