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Government changes to how employees claim for unfair dismissal will help small businesses, according to the British Chamber of Commerce (BCC), a network of leading companies.
Under the new system, which comes into effect from April 2012, employees will have to pay an upfront fee of £250 to apply for a tribunal claim, and a further £1,000 if the claim is granted - both fees are refundable if successful.
With a fifth of businesses threatened with unfair dismissal claims over the last three years, the BCC thinks that the changes will specifically help smaller employers and make them more confident in taking on new staff.
John Longworth, director general of BCC, said: "When faced with a tribunal, a large proportion of small businesses opt for settlement since the cost is lower than defending a claim. This drives a culture of settlement and acts as a brake on growth and jobs."
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