Red Tape Challenge kicks off with changes to unfair dismissal rules

The Government's Red Tape Challenge kicked off this week with the decision to change unfair dismissal rules.

The decision, which will see the qualification period for the right to claim unfair dismissal extended from one to two years, will come into force on 6 April 2012, and could save British businesses nearly £6 million a year.

Commenting on the news, which should see the number of unfair dismissal claims drop by around 2000 a year, Business Secretary Vince Cable said: "Businesses tell us that unfair dismissal rules are a major barrier to taking on more people. So we have announced that only after working for the same employer for two years can an employee bring an unfair dismissal claim."

The announcement comes following the Government's Employment Law Review, which has resulted in the launch of the Red Tape Challenge, which calls on employers and employees to come forward and air their grievances with more than 160 employment laws, suggest how regulations can be improved, and whether any should be abolished.

Examples of regulations you can comment on over the next three weeks include:

  • Rules on collective redundancies
  • Employment agencies
  • Immigration checks
  • The National Minimum Wage
  • Statutory sick pay.

Commenting, Employment Relations Minister Edward Davey said:

"We often hear from businesses that employment related regulation holds them back from growing their firms and employing more people.

"Whether it is the filling out of endless forms when you hire your first member of staff, the complexities of letting somebody go, or simply manage staff on a day-to-day basis, we want to review these regulations with the aim of giving business more confidence in employing people and creating more jobs."