The government will consult on introducing protected conversations that would allow employers to discuss issues such as retirement plans and work performance with employees without fear of being referred to an employment tribunal.
The consultation will also address employers’ fears of a tribunal by increasing the qualifying period for unfair dismissal claims from one year to two years from April 2012.
David Cameron announced the move in a speech on 10 November at a conference on exporting for growth in London.
He said: “When it comes to making it easier to employ people, we are going to get to grips with some of the rules and regulations designed to protect employees.
“We will be consulting on the introduction of protected conversations, so an employer and an employee feel able to sit down together and have a frank conversation – at either’s request.”
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In the current economic climate, the proposals will empower employers to invest in jobs and make long-term commitments to staff without fear of being saddled with the hefty costs of overly complex bureaucratic hurdles and burdened with underperforming staff. Employers feel that they cannot have frank conversations with employees without fear of that honesty resulting in legal action.
It is of great relief to employers that they now have two years to get a working relationship right with an employee as opposed to just one. They can now create jobs without fear of becoming embroiled in legal action quite as abruptly as they do now. In effect, the proposals will make it easier to hire people and keep them, rather than dismiss them.