Business Secretary, Vince Cable, has claimed that the new employment law reform package could save businesses £10 million per year.

From Good Friday (April 6th 2012), changes to the employment law which are set to make it easier for businesses to hire staff, as well as improving the process for when staff have to be let go, came into force – and it is these changes which Mr Cable claims are set to deliver direct net savings to businesses of more than £10 million per year, with wider benefits estimated to be more than £40 million per year.

Under the new employment laws, the government have streamlined employment tribunals to cut unnecessary demands on employers – including increasing the qualifying period by a further twelve months – whilst safeguarding workers’ rights.

Other changes to employment law which came into force at the end of last week include, judges being able to sit alone in unfair dismissal cases; witness statements being provided in writing as opposed to witnesses reading their own statement out; and the maximum level for costs awarded to businesses winning a vexatious tribunal claim will rise from £10,000 to £20,000.

Following the reform of the employment law, the Business Secretary, said: “For too long now the system in place for employment tribunals has been a bloated and bureaucratic obstacle for employers and the taxpayer.

“For employers they were finding that weak and vexatious cases were too much of the norm, too easy to bring forward, while for the taxpayer they were proving ever more expensive to run.

“We have seen claims drop in the last year and we want to see this continue as we introduce alternative measures in the coming months helping both parties resolve workplace disputes.”