Cable reveals changes to UK employment law

Changes to employment law have been unveiled by Business Secretary Vince Cable who claims they will give employers more flexibility in managing their workforce while reducing red tape.

"We have been looking across the range of employment laws with a view to making it easier for firms to hire staff while protecting basic labour rights,” said Cable.

“Our starting point is that Britain already has very flexible labour markets. That is why well over one million new private sector jobs have been created in the last two years, even when the economy has been flat-lining.

“But we acknowledge that more can be done to help small companies by reducing the burden of employment tribunals, which we are reforming, and moving to less confrontational dispute resolutions through settlement agreements."

Amongst the proposed changes are a cap on unfair dismissal claims, streamlining employment tribunals by making it easier for judges to dismiss weak cases and improved guidance for small businesses on the Acas code of practice on discipline and grievance.

The UK already has a lightly regulated, flexible labour market that the OECD considers to be amongst the best in the world, behind only the US and Canada.

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