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Unfair Dismissal qualification period

The Government intends to extend the qualification period for unfair dismissal from one to two years

Financial Penalties

The Government intends to introduce a provision for employment tribunals to levy a financial penalty on employers found to have breached employment rights. The penalty will be payable to the Exchequer. As a result of feedback, however, we intend to allow judges the discretion about whether to exercise this power, to ensure that employers are not penalised for inadvertent errors.

 Compromise Agreements

The Government will address the major concerns raised by business in relation to compromise agreements. We will bring forward an amendment to clarify s.147 of the Equality Act, to provide reassurance to parties that compromise agreements can safely be used. We will also consider how we can develop a standard text for compromise agreements, to help employers worried by the potential cost of legal advice, so that they are encouraged to use compromise agreements where they might otherwise not have done so. In addition,

Will consult in coming months on amending section 203(3)(b) of the Employment Rights Act 1996 to enable compromise agreements to cover existing and future claims without requiring long lists of causes of action, as well as introducing a system of “protected conversations” that would allow employers and employees to have open and frank conversations with each other about any employment issue without the existence of a formal dispute. Finally, we will ame


Following the consultation, we are even more convinced about the role that mediation can play, as one of the forms of early dispute resolution. There is much work to be done over the coming months and years to change attitudes to mediation and embed it as an accepted part of the dispute resolution process. Government will work with the industry and key stakeholders to make this a reality. As a first step, we intend to explore with large businesses within the retail sector whether and how they might be able to share their mediation expertise with smaller businesses in their supply chain, and will use this as a basis for expanding to other sectors. We will also pilot the creation of regional mediation networks through the provision of mediation

Resolving Workplace Disputes – Government Response to Consultation ww.bis.gov.uk