Unions criticise dismissal plans

The Government’s consultation on current dismissal procedures will leave workers “horrified”, unions have said.

Proposals include the introduction of a no-fault dismissal for workers in micro-businesses, with companies required to pay out a set amount of compensation.

Business Secretary Vince Cable said:

“The UK already has one of the world’s most flexible, adaptable labour markets, making it one of our strengths and it stands up very well in international comparisons. “However, we recognise that there is room for improvement which balances the needs of business while ensuring that the necessary employment protections are upheld.”

He added that the Government is already in the process of reforming the employment tribunal system in the UK and will raise the qualifying period for unfair dismissal from one to two years. But he said:

“We recognise that not all jobs work out for both parties – the staff member doesn’t quite fit or simply the relationship has irretrievably broken down. And for micros in particular, who often don’t have legal or HR teams, the process to let a staff member go can be a daunting and complicated process.

“We want to give businesses the confidence to hire new staff and make sure when a dismissal needs to be made, they aren’t tied up in red tape. This is an effort to see how extensive the problem is and shed some light on the desire for a change to the rules.”

IBB’s Employment Team provides advice on the employment aspects of all major business decisions. To contact a member of the team for advice, call us on 01895 207892 or email employment@ibblaw.co.uk