There have been many changes in relation to UK employment laws and many more are pending. Last week saw the introduction of several changes to employment laws in England & Wales and Scotland (not NI), including the introduction of fees to lodge tribunal claims and a one year salary cap on unfair dismissal compensation.
Employment law is a devolved power in Northern Ireland. The Executive has already ruled out the introduction of tribunal fees at this time but is undertaking the most wide-ranging consultation on employment laws since its formation.
The Consultation will seek views on Consideration of the merits of extending the current qualification period for unfair dismissal (currently one year in NI; recently raised to two years in GB).

We have asked the Department for Employment and Learning to write articles on key areas of the consultation.

Unfair Dismissal Qualifying Period
In Great Britain, the unfair dismissal qualifying period (the period employees must work before they become entitled to exercise the right to lodge a tribunal claim for unfair dismissal) changed from one year to two years in April 2012. The policy intention was to improve business confidence to hire employees, therefore promoting employment and economic growth. It was also thought that this would decrease the number of unfair dismissal claims to Employment Tribunals. The one-year qualifying period in Northern Ireland remains unchanged. In the Republic of Ireland, the qualifying period is also one year.

The Department for Employment and Learning has received feedback from Northern Ireland’s major employer organisations and others that the differential between the Great Britain and Northern Ireland qualifying periods may have an adverse impact on Northern Ireland’s competitiveness and, in particular, our ability to attract Foreign Direct Investment.

In addition, those organisations which operate on a UK-wide basis have highlighted that any differential between Northern Ireland and the rest of the UK would create significant logistical and administrative challenges, in that they would have to operate two different systems.

Employer bodies have also suggested that this disparity will discourage indigenous companies, particularly SMEs (Small and Medium Enterprises), from increasing their workforce, and may also act as a disincentive for potential start-up businesses.

The counter argument that has been provided by trade unions and other employee representative bodies is that there is a lack of evidence of a direct correlation between the length of the unfair dismissal qualifying period and economic growth, business confidence, or to the number of tribunal cases being taken.

In addition, any extension to the qualifying period could potentially create volatility within the labour market, with new employees seeing themselves as having lower levels of job security. Any increase in the qualifying period may also create the perverse incentive of increasing the numbers of unfair dismissal claims being channelled into the tribunal system on separately cited discrimination grounds.

The Department’s consultation now explores a range of policy options which reflect the particular make-up of the Northern Ireland economy, with its dependence on SMEs, and the need to encourage greater levels of Foreign Direct Investment, new business start-ups and entrepreneurialism.

Alongside the consultation, the Department will be publishing a report examining the attitudes of SMEs towards discharging their employment law obligations. The report puts forward a number of recommendations which have been factored into the development of the consultation.

To view the 88-page DEL review follow the link below:
http://bit.ly/142XfNR

In exploring a wider range of options, and in trying to assess the true impact of the unfair dismissal qualifying period, the Minister for Employment and Learning, Dr Stephen Farry, is seeking to address employer concerns about Northern Ireland’s competitiveness in a UK and global context, whilst minimising the impact on employee rights.