While much of the property industry’s response to the King’s Speech focussed on government plans for rental sector and planning reform, it may well be another Bill which will impact agencies.

The Employment Rights Bill will, amongst other things, allow employees to claim unfair dismissal and other issues such as sex or race discrimination or unfair deduction in salaries, as soon as they join an agency. This will be instead of the current situation where most employees have to wait two years. 

This proposal – which could take a year or more to become law – has already triggered a response from the employment law team at law firm BDB Pitmans. 

Nicholas Le Riche, a partner in the team, warns that this change risks overwhelming the tribunal system.

He comments: “The anticipated changes set out in Labour’s Plan to Make Work Pay run the risk of overwhelming an Employment Tribunal system that is already under considerable strain. The likely new rights for zero-hours workers and greater equal pay protection will provide greater scope for individuals to bring Tribunal claims but it’s the possible extension of unfair dismissal protection from the first day of employment together with the potential doubling of the time limit in which to bring claims that is likely to have the most immediate impact. 

“The Government’s promise to continue to boost technology within Tribunals must be delivered quickly and there will need to be further significant investment in the system if it isn’t to grind to a halt. We are already of aware of Tribunals losing employees’ case files, not processing claims for almost a year from when they’re submitted, as well as hearings being cancelled on very short notice due to lack of judicial availability and an increase in workload without further investment will only exacerbate these issues. 

“The Government is clear in its determination to increase workers’ rights but without a corresponding extension of funding for the Tribunal system, the ability for both employees and businesses to manage these changes effectively could be fatally undermined.”