The qualifying period for unfair dismissal claims will be increased from one to two years, with effect from 6 April 2012. It is predicted that this measure will lead to a reduction of around 2000 unfair dismissal claims a year and save businesses £6m a year. Business Secretary Vince Cable said:
“The priority of this government is to increase growth in our economy. We have one of the most flexible labour markets in the world but there is more we can do to give British business the confidence it needs to create more jobs and support the wider economy to grow.
“Businesses tell us that unfair dismissal rules are a major barrier to taking on more people. So today we have announced that only after working for the same employer for two years can an employee bring an unfair dismissal claim.”