Changes to employment law leave employers more vulnerable

If you’re worried about facing unfair dismissal claims from an ex-employee, business secretary Vince Cable’s recently announced employment law proposals will come as welcome news to you.

The government has suggested reducing the maximum amount an employee can win at an employment tribunal, which may deter would-be claimants from seeking up to £72,300 in court for an unfair dismissal claim. Rather than pursue the matter in court, an employee who feels he’s been unfairly dismissed may be more likely to resolve the employment law matter outside court, saving the company money and causing less damage to its reputation.

The second suggestion is that employers should be encouraged to sign compromise agreements with the employee they wish to make redundant, to reduce the risk of the employee later accusing the company of unfair dismissal. While Mr Cable argued it would speed up the redundancy process for both employer and employee, skeptics have suggested that an employee could argue he or she was placed under pressure to sign the agreement and file for ‘constructive’ dismissal, which would once again land the employer in court.

The best way to safeguard your business is to ensure that if you’re in the difficult position of having to make an employee redundant, you have a legally drawn-up compromise agreement at the ready, and you give your employee a fair period of time to consider it along with the opportunity to discuss the agreement with their own solicitor to ensure the compromise agreement is fair.

Burt, Brill & Cardens are leading employment law solicitors in Brighton and Sussex. Contact us today for a free enquiry or to find out more information on our legal services.


Return to Employment Law for Employers.