THE Governments review of existing employment law legislation and the launch of its red tape challenge has resulted in a number of changes aimed at assisting businesses and boosting economic recovery.

In this article, we summarise some of the main changes and what they will mean in practice for businesses.

The most significant development is that the unfair dismissal qualifying period for unfair dismissal will increase from one to two years.

The change will take effect from April 6, 2012, and we have now been informed that the new qualifying period will only apply to employees whose employment begins on or after April 6, 2012. Those employees already in employment before that date will retain the current one year qualifying period.

There has been a recent increase in employment tribunal awards and from tomorrow onwards the maximum limit on a weeks pay has increased from £400 to £430.

The maximum unfair dismissal compensatory award is now £72,300 for dismissals taking effect on or after February 1.

In April, 2012, the standard rates for statutory maternity pay, statutory paternity pay and statutory adoption pay will rise to £135 from £128.73. The weekly earnings threshold increases from £102 to £170 Statutory sick pay will also increase from April, 2012, from £81.60 to £85.85.

In October, 2012, new laws taking effect will require all employers to automatically enrol eligible employees into a pension scheme.

Initially, the scheme will only apply to the largest employers and the full implementation period will last for four years.

In addition to the changes already confirmed, the Government is continuing consultation in a number of other areas.

The conciliatory service ACAS may become more heavily involved in employment disputes.

Potential claimants will be required to submit details of their dispute to ACAS and pre-claim conciliation will be offered for one month.

This will effectively stop the clock on any limitation period, but it is not expected that this service will be introduced until at least April, 2014.

There is a long-term reform programme being undertaken by the Government looking at increased use of mediation to resolve disputes.

This will involve working more closely with the private sector to share knowledge of mediation with smaller businesses.

It is proposed that financial penalties will be introduced for employers who lose at tribunal up to a maximum of £5,000. This will be applied at the tribunals discretion and the penalty will be reduced by 50% if paid within 21 days.

Fee charging structures may be brought in for the first time at different stages of employment tribunal claims.

The consultation into this matter was published on December 14, 2011, with option one proposing an issue fee and a hearing fee depending on the nature of the claim. Option two proposes only an issue fee.

It is suggested that such proposals could be implemented in 2013 or 2014.

The red tape challenge has already brought about some change and it will be interesting to see how many of the above proposals are implemented in the coming months and years.