Southampton: Businesses 'benefit' from employer charter

A “new employer’s charter” being discussed by the government at the moment could see the South’s employers dealing with more lenient employment legislation, advises Moore Blatch solicitors.

Announced this week, the new charter aims to relax the current employment laws to provide a boost to the private sector, encouraging companies to take on new workers.

Moore Blatch employment expert Katherine Maxwell commented: “There are some significant changes being proposed which could see workers that are in their first two years of employment being particularly affected.

“The new proposals will give employers more powers to sack under-performing staff without the threat of tribunal proceedings for unfair dismissal.”

Currently employees are able to bring an unfair dismissal claim after a year’s employment.

Other proposed changes would also include introducing a fee for bringing employment tribunal claims. This would seek to deter opportunistic, false or malicious tribunal allegations.

The government is also launching a review which will support small firms by excluding them from some employment laws to bolster this area of the economy. These exclusions could include reducing the period that small firms have to pay workers statutory sick pay.

Maxwell concluded: “The government is supporting smaller companies as they are seen as the key to securing economic recovery and it is considered that changes of this sort would encourage them to hire more employees.

“For many employers, changes of this sort will be welcomed. We will now need to wait and see which way the government proceeds.”