A CHARTER aimed at clarifying business rights and responsibilities has been welcomed by North-East law firms.

Business Secretary Vince Cable launched the Government’s Employer’s Charter last Thursday.

Partners at Darlington-based Latimer Hinks Solicitors, and Ward Hadaway, in Newcastle, welcomed the charter, which is seen as likely to reduce vexatious cases by disgruntled employees.

Under the charter, a worker wishing to claim unfair dismissal will have to have been with a company for two years, rather than the current 12 months.

In addition, the Ministry of Justice will consult in the spring on the introduction of fees for any tribunal claim, which potentially could stop free claims by employees.

The firms believe that if a cost was introduced to make a claim, it could strengthen a genuine claimant’s position, because the tribunal would be more likely to recognise the commitment to the claim.

Other changes being proposed are that all unfair dismissal clams should first go to the Advisory, Conciliation and Arbitration Service (Acas) to try conciliation first.

Latimer Hinks employment lawyer Nick Poole said: “There is a perception that current employment law, in the area of tribunals, is weighted too heavily in favour of employees.

“With the Employer’s Charter, this will be clarified and even strengthened in favour of businesses.

“While it is right that tribunals are there when required, the charter will cut down on vexatious claims and the extension of the qualifying period adds a buffer for employers, putting them in greater control of who they employ.”

Harmajinder Hayre, partner in the employment law team at Ward Hadaway, said: “The proposed changes will represent the most fundamental changes to the Employment Tribunal system for years.

“They will come as a welcome relief for employers and the tribunal system, which has struggled to cope with the increasing year on year increase in employment tribunal claims.”

Mr Hayre, who has more than a decade’s specialist experience in employment law and advises a range of national retail, financial services and transport sector companies, says the changes are long overdue, particularly in the current economic climate.

He said: “While no one would deny redress to someone who has been unfairly treated at work, for too long now the balance has swung too much in favour of employees.

“In an increasing number of cases, employers have decided to settle claims with employees before going to tribunal, even if those workers have not been unfairly treated, because companies feel they cannot afford the costs and the adverse publicity which tribunal hearings can attract.

“This is particularly true at a time when businesses and organisations are having to manage their finances extremely carefully and often being made to look at ways to make savings.

“Hopefully, with these proposed reforms, the system will be more balanced between the rights of employers and employers so that organisations faced with difficult decisions about their workforce will be able to make appropriate changes with a greater degree of confidence.”