Employment law reforms will pile thousands of extra cases onto an already stretched tribunal system, government analysis has revealed.
The Employment Rights Act, which received royal assent last month, reduces the qualifying period of employment for eligibility to make an unfair dismissal claim from two years to six months. The legislation, which is set to be implemented (probably) in 2027, also removes the cap for compensation awards for unfair dismissal claims.
In what is believed to be the first time the government has specified the effect of the changes, newly-published analysis projects that the volume of cases going through arbitration and the employment tribunal could increase by 17%.
This would mean an extra 21,000 early conciliation notifications to ACAS, 6,900 more employment tribunal cases, and 1,300 additional cases which require judicial time, such as a full hearing, the analysis estimates.
The government has stressed that these figures are illustrative and subject to change. They may also be affected by a dispute resolution system taskforce jointly set up by the Ministry of Justice and Department for Business and Trade, aimed at preventing workplace disputes.
The analysis adds: ‘The exact impact on the enforcement system is difficult to predict because the number of cases that enter the system each year fluctuates, and it will ultimately depend on behavioural factors like employers’ willingness and ability to comply with regulation, and employees’ willingness to bring forward a dispute.’
For organisations keen to flourish and prosper, mediation is clearly set to become a necessity, not a luxury.
Contact us for further information about our professional mediation services.