small claims tribunal
Business secretary Vince Cable has proposed putting a limit on the amount someone can claim for unfair dismissal at small claims tribunal .
He plans to limit compensation pay-outs to a maximum of 12 months' salary. He also wants to introduce settlement agreements, where employees agree to leave their position, get a pay-off but without being able to go to a small claims tribunal . However, proposals that could potentially make it easier to dismiss workers will not go ahead.
These suggestions came on top of proposals that were made in April, which stipulated that only employees who have been in the company for two years or more could take a case to tribunal, an increase on the previous limit of one year.
The business secretary wants to reduce the burden on smaller companies, employment tribunals are not only costly but expensive. No limits on the amount an employee could receive could potentially ruin a company, this puts unwanted pressure on businesses that are already struggling in a difficult climate. He feels that we need to acknowledge this cost and do more to help the smaller business.
There has been very mixed feelings on the proposals. Some people feel that if an employer has treated a member of staff unfairly, then it is right that the tribunal decides the amount of compensation that is due and this should serve as a warning to employers on treating staff unfairly.
Others are welcoming the proposal, they believe that small businesses are wary of employing more staff for fear of being taken to a Employment Tribunal and facing a lengthy and expensive dismissal process.
Tag: small claims tribunal
