Employment Law

Baroness Turner of Camden Excerpts

Monday 31st January 2011 Lords Chamber

Asked by

[Baroness Turner of Camden]

To ask Her Majesty’s Government whether they have plans to revise employment law; and, if so, what consultations have been undertaken, and with which organisations.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, the Department for Business, Innovation and Skills is leading a review of employment laws to ensure that we maximise flexibility for employers while protecting fairness for employees and provide the competitive environment required for enterprise to thrive. This is a rolling programme over the length of the Parliament, and individual departments are engaging with representatives of employer and employee groups. As part of this, last Thursday we announced a consultation on reforming the employment tribunal system, which followed discussion with a range of stakeholders including the CBI, the TUC and the British Chambers of Commerce. This consultation will last until 20 April 2011.

[Baroness Turner of Camden]

My Lords, I thank the noble Baroness for that response, but the Business Secretary last week announced a revision of employment law to make it easier for employers to dismiss people and more difficult for employees to allege unfair dismissal and to refer cases to a tribunal. Indeed, it will be impossible to seek redress unless the employment has lasted for two years or more. In other words, that will apply to a large section of the workforce. This is at a time when many working people are already concerned about employment and their future prospects. What does the Business Secretary think he is doing? Surely he should be doing everything possible to keep people in employment rather than on benefits.

[Baroness Wilcox]

My Lords, we have announced that we are considering increasing from one year to two years’ service the qualifying period before an employee can claim for unfair dismissal. This change, if implemented, would return the law to as it was until 1999. We believe that this is fair to employees and employers. It is fair to employers, because it gives businesses the confidence to take on staff that they may not have employed otherwise, particularly in small and medium-sized companies. It will also encourage employees to have a longer time to prove that they are the right person for the job and a longer time to prove their skills, and we hope that fewer and fewer cases will finish up in the courts. We feel that this is a good move and we hope that the Opposition will help us to develop it through the consultation period, which will last until 20 April.