Employment law changes could hold buyers back
The changes are likely to impact on clients’ feelings of job security and appetite for increased financial outlay. And whilst the government has positioned these changes as “enterprise friendly”, employees may view these changes with some consternation.
Eddie Goldsmith, senior partner at Goldsmith Williams, said: “The Bill will introduce a cap on compensation of twelve months salary or £74,200 whichever is the greater. In addition any employee who believes they have a claim for unfair dismissal will face charges in pursing that claim.
“Following this change to the law anyone bringing a claim for unfair dismissal will face fees, £250 to lodge a standard claim and a further £950 if the claim goes to a hearing. And whilst the bill also will herald financial penalties for employers found to be in breach of employment law where their behaviour had one or more aggravating features, the thrust of this legislation seems to favour employers looking to dismiss staff.”
A further change included in the bill regards “protected conversations”, where employers can offer to pay staff to leave their employ and the staff will not be able to refer to those conversations in any subsequent unfair dismissal claim.
Goldsmith added: “All these changes could introduce further instability into an already febrile housing market, deterring potential home movers and first time buyers from taking the plunge and purchasing property.
“As a partner in a leading firm in this market place I want to highlight these new measures to brokers so that they are aware of them when interviewing clients and completing mortgage applications.”