Report calls for employment law change

It should be easier to sack unproductive workers, a leaked Government report has revealed. A Downing Street-commissioned report by venture capitalist Adrian Beecroft suggested that employees who are not pulling their weight should not be able to claim unfair dismissal if they are dismissed, in a bid to free up business and boost economic growth. While the radical measure is said to be supported by many MPs within Government, it is expected to be fiercely opposed by many Liberal Democrats.

The Daily Telegraph revealed that a draft of the report says that idle workers are being left to “coast along” and that firms fear expanding their workforce because they do not know how new employees would settle into the job, and that it would be impossible to sack them if they turned out to be unsuitable. The document says the first major issue for British enterprise is “the terrible impact of the current unfair dismissal rules on the efficiency and hence competitiveness of our businesses, and on the effectiveness and cost of our public services”.

Mr Beecroft went on to say that public sector managers often hand under-performing staff large settlements to avoid costly tribunal rulings. A, Senior Solicitor in IBB’s employment team, comments:

“Whether the Prime Minister will take the report seriously remains to be seen. Many HR practitioners would be surprised if he did, as the report’s recommendations appear to fly in the face of the Government’s most recent announcements about easing (rather than abolishing) unfair dismissal laws, through an extension of the qualifying period to bring a claim (from one year to two).

“If the recommendations are implemented though, it would arguably be the biggest and most controversial employment law change that this country has seen for a generation.”

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email enquiries@ibblaw.co.uk.