The Queen is expected to outline a raft of employment changes in her speech tomorrow including major reforms to the tribunal system.

In her speech, the monarch will unveil a new Enterprise and Regulatory Reform Bill intended to roll back red tape that businesses have complained is restricting growth.

The changes will include a slimmed down employment tribunal system designed to reduce the number of costly cases.

Under the new rules judges alone will have the power to decide whether to consider claims for unfair dismissal as opposed to consulting a panel. Claimants will also face higher tribunal fees to dissuade opportunistic or vexatious claims.

The Queen will announce a new system of dispute resolution also intended to reduce the number of tribunals. This will require workers who want to bring an unfair dismissal case against their employer to first lodge their claim with conciliation service Acas.

She may also highlight government plans to launch a consultation on ‘protected conversations’ for employers to begin later this year.

This would enable employers to discuss issues like retirement or poor performance in an open manner with staff without the conversation being used later as evidence in tribunal claims.

Another likely inclusion is an extension of the right to request flexible working, which is set to be given to all employees.

In an interview with the Daily Telegraph today, business secretary Vince Cable spoke out against increasing regulation from Europe and suggested he would resist further regulations from Brussels.

“One of Britain’s relative strengths is that we have one of the most flexible labour markets in the developed world. This has prevented unemployment reaching the horrifying levels seen in some other European countries.

"At a time when we struggle to escape from the worst economic crisis of our lifetime, the last thing we need is the imposition of a costly new set of regulations potentially costing the economy billions a year,” the minister said.

In a clear attack on EU interference, Cable said called the Working Time Directive one of “the most wasteful” red tape generators.

“Like a lot of European social legislation this directive, first put forward 20 years ago, was well intentioned. It was introduced to protect the health and safety of worker. But a heavy-handed, one-size–fits-all approach has been adopted with unintended perverse outcomes.”

In April the government introduced changes to unfair dismissal claims to make it easier for employers to sack poor performers. Staff must now be employed for a minimum of two years before they can make a claim. The government estimated that this reform alone will reduce tribunal claims by 2,000 each year saving £4.7 million.