Umbrella Companies | REC welcomes government plans to reform the tribunal system

REC welcomes government plans to reform the tribunal system

The government has confirmed that it will reform the tribunal system in the UK, a decision that has been welcomed by the REC.

This is a highly relevant area for recruiters. The Agency Workers Regulations will be implemented later this year and this could lead to an increase in the number of claims that are brought before a tribunal.

As part of the new proposals, claimants would have to pay a fee in order to lodge a tribunal action. The qualifying period before people can claim unfair dismissal will be raised to two years and all cases must first go through ACAS before being brought before a tribunal. The net result of these changes should limit the amount of frivolous and unfounded claims.

Tom Hadley from the REC said this was a step in the right direction to help businesses. Members of the REC have already said they feel employment tribunals are a source of unnecessary bureaucracy and expense. ACAS is not predicting a massive increase in tribunals when the AWR are implemented but there are bound to be some claims from umbrella company contractors who feel they are not getting the benefit of equal treatment.

Reforming the tribunal system will reassure both recruiters and clients that the AWR will not add considerable risk to the supply of contractors and temporary workers, Hadley added.

Another grey area for recruiters surrounds the question of equal treatment of benefits and bonuses for agency staff. The REC has been participating in some consultation workshops aimed at addressing recruiters’ concerns. The Confederation will continue working with the coalition to ensure that the Agency Workers Regulations are workable and that comprehensive guidance is provided to recruiters. It will also work alongside recruiters to ensure the necessary implementation systems are in place.

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