BOLTON and Bury Chamber has praised government proposals designed to create a ''fairer and more efficient'' employment tribunal system.

The Chief Executive, Mr Richard Bindless, said: ''We are very pleased that the Government has listened to what the Chamber movement has been telling them about the current system, which is open to abuse from ill-founded claims.

"The proposed new rules will create a fairer balance between the interests of employers and employees.

''Under the current regime, employees have little to lose by pursuing flimsy claims, whereas employers can face significant legal costs, even where the tribunal finds in their favour. Consequently, many businesses feel pressured to settle before any hearing to avoid the heavy time and financial costs involved in defending a case."

The government's proposed new rules on employment tribunals include:

A new power for tribunals to strike out ill-founded claims which have no real chance of success.

An increase in the cost penalties which can be awarded against a party who brings an unreasonable or vexatious case from £500 to £10,000.

Raising the deposit on pursuing a weak case from £150 to £500.

In January, Bolton and Bury Chamber launches its Legal Expenses Insurance service, which is being offered to members as part of their membership fee and provides them with up to £500,000 worth of cover per annum to meet the legal costs of issues such as employment disputes.