In his speech at the Engineering Employers’ Federation (23 November 2011), Vince Cable, Secretary of State, outlines “a package of measures to improve the way businesses hire, manage and end relationships with employees, when this proves to be necessary.”

He proposes a radical reform of the tribunals system: “First and foremost we want to reduce the number of tribunals happening in any one year – because we believe the only winners from that are the lawyers. So in future, all claimants will be obliged to submit their complaint to ACAS, in order that parties are given an opportunity to resolve their dispute through conciliation before it can be taken to a tribunal.”

He also talked about a system of ‘protected conversations’ which will “…allow employers to raise issues such as poor performance or retirement plans in an open way, free from the worry it will be used as evidence in a subsequent tribunal claim” and a ‘Rapid Resolution’ scheme as a quicker and cheaper alternative to a tribunal.

He then went on to talk about improving the ‘”very unwieldy, expensive and delay ridden” tribunal system itself and also announced that the “Ministry of Justice will shortly publish a consultation on introducing fees for anyone wishing to take a claim to an employment tribunal.” Cable also explained that they are “doubling the qualifying period for the right to claim unfair dismissal from one year to two years.”

Cable went on to talk about the Red Tape Challenge on employment law and said that “of the 159 regulations looked at, over 40% are to be merged, simplified or scrapped.”

Within this he discussed a “review into sickness absence…setting out recommendations to ensure people are not shut out of the labour market purely because of ill-health” and also talked about flexible working with regards to caring and parenting:
 “That same principle – helping people to find work and keep it - also underpins our commitment to extend the right to request flexible working, and to modernise maternity leave so it becomes shared and flexible parental leave. These reforms will help millions of people juggle their commitments at work with their responsibilities at home.

Family life has been transformed in recent decades. Most women now go out to work and men shoulder more of the duties at home – at least we hope they do. As roles and responsibilities have changed, our lives have become increasingly complex. And that’s not just true of parents with young children. Many have to combine working with looking after an elderly parent, a sick partner, or a grandchild. Extending the right to request flexible working to everybody will make that difficult job easier.

But we are committed to extending flexibility at work in a way that avoids imposing any unnecessary burdens or costs on companies. We want to deliver the real economic and business benefits that flexible working brings. Research by the CBI, for example, has found that 63% of firms offering flexible working report lower staff turnover – producing savings on recruitment and training costs. It is in their interests, too.

Greater flexibility is also required in relation to parental leave, to keep up with the profound shifts in society we have witnessed in recent decades. Nearly all fathers, 94%, take time off when their child is born, but around 30% are supplementing their paternity leave with their holiday entitlement. There is a demand here that is not being met.

Indeed research by the Fatherhood Institute has found that a quarter of fathers change jobs, often in the first two years after a child is born, so they can spend more time with their families. This inevitably generates costs for employers, so the answer lies in a system of leave that reflects modern patterns of parenting, but in a way that does not mean extra costs or regulation for business.

Our plans empower individuals to balance work and home life, helping to keep them in the labour market, and they give businesses a larger pool of potential recruits. They will also enable companies to hold onto skilled and experienced staff and keep down costs. So everyone should benefit.”
He concluded that  “changing the legislation is only a beginning. We want to see a wider change in the employment relations culture….The package of measures I have announced today carefully balances the needs of employers with the rights of individuals. But we still have to work through the fine detail in the months ahead to make sure we get it absolutely right. “

Click here to view the full speech.