Chamber firms concerned over proposed law changes

Jack Silver
BBC News, Guernsey
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Some firms say they are worried about "malicious" tribunal claims

Some businesses in Jersey have criticised proposed changes to the island's employment and discrimination laws.

A survey for Jersey Chamber of Commerce found a change to the Employment and Discrimination Law being debated this week made member firms concerned they could face an "unsustainable financial risk".

The survey of more than 150 local businesses, conducted over a 24-hour period last week, found the majority were worried about "malicious" tribunal claims and the maximum award for employment-related discrimination claims rising from £10,000 to £50,000.

Deputy Lyndsay Feltham, Jersey's social security minister, said it was "important to remember" the chamber was "just one interest group".

She said a "comprehensive consultation" had taken place before the draft proposals, adding it was important recommendations were "objective" and did not favour "the views of any one interest or lobby group".

Feltham previously said the proposals would "give employees greater protection and ensure a fairer, more transparent process in addressing workplace issues".

'Spiralling costs'

A spokesperson for the chamber said: "Employers fear spiralling costs as the potential number of claims increases."

The chamber also said it believed the island's tribunal service should be given powers to make employees pay a small deposit before making claims as well as firms' legal costs, where the claim was found to be "malicious" or "without merit".

Feltham said the proposition was based on recommendations from Jersey's Employment Forum, which oversaw the island's job laws.

She said malicious complaints were an "issue for businesses", but ministerial powers allowed her to give tribunals extra powers, so it was not necessary to add this to her proposal.

The amendment to the law makes a number of proposals including requiring businesses to give reasons for dismissal to employees in writing, and raising the maximum award for unfair dismissal to the higher amount of £50,000 or 52 weeks salary.

Other changes included anonymising judgements, introducing a limited costs regime "for vexatious conduct" and extending response times for employers.

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