The Government has announced changes to the rules on unfair dismissal as part of its stated objective of reducing the burden on employers, thereby encouraging them to recruit staff.

It could save British businesses nearly £6 million a year and from 1 April 2012, employees will only qualify for the right to claim unfair dismissal after two years of employment, rather than the one year currently in place.

In addition, the Government will consult on charging a fee for individuals to bring a claim. Although no proposed figure has been announced the figure mooted is £250 when a claim is submitted as well as £1,000 when the claim goes to Tribunal. If successful the money will be refunded to the claimant. It is proposed that these new rates will become effective from April 2013, but previous experience shows that the fees may be lower when the changes actually become effective.