Employment
specialists at a City law firm are warning of a likely rise in unfair dismissal
claims if the new Employment Bill is introduced.
They
also claim that businesses are set to incur substantial costs as they become
caught up in additional red tape.
Key
to the new Bill is the proposed introduction of a statutory set of procedures
for dealing with grievance and disciplinary procedures. If an employer breaches
these, an employee will automatically be able to claim unfair dismissal without
defence.
Partner
and head of the employment group at Charles Russell, David Green, said,
"We are certain to see a rise in unfair dismissal claims and the
additional costly red tape the Government assured businesses they would avoid,
will in fact be increased.
"Not
only will employers have to review all their employment contracts to include
these new procedures, they will need extra HR capacity to ensure that the
procedures are carried out. To do otherwise could be a very expensive risk.
Line managers will also need additional training to ensure they are 100 per
cent confident in carrying out the procedures."
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He added that costs to employers would be substantial.
"If the statutory procedures are introduced it is going
to have a real effect on the day-to-day lives of employers," said Green
