Job rights shake-up ‘about growth’

The Government has asserted that its plans to shake up employment rights are all about stimulating economic growth and not about making it easy to fire staff without comeback. Business minister Jo Swinson said the Government wants to introduce arrangements that enable businesses and workers to reach “a consensual end” when a period of employment is not working out. She said the move would help to save large amounts of money by avoiding the need for costly employment tribunals and it would also encourage companies to take on more staff. Employers can enjoy the security of knowledge that they will not face a tribunal case, while employees get “the certainty of a cash payment; they avoid the time and stress of a tribunal and they leave with their head held high and possibly a reference”, she told MPs.

Labour has criticised the plan for “settlement agreements” as it believes they could signal an end to fair protection enjoyed by workers. The opposition party also argues that such a system could actually hinder economic growth as people could be discouraged from spending if they fear for their job security.

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