Pay and Benefits

Unfair dismissal rights should be removed according to a leaked Government report.

 

The recommendation, put forward by venture capitalist Adrian Beecroft, has been suggested in order to help companies to dismiss unproductive workers without fear of a tribunal claim.

 

In the document, obtained by The Daily Telegraph, Beecroft argues that the current employment laws are undermining growth. He believes that employers should be empowered to sack staff if they are underperforming without explanation.

 

The report has already inflamed unions which argue that the scrapping of this legislation will do nothing to help promote growth.

 

Brendan Barber, Trades Union Congress General Secretary, said: “The clue is in the name. Employers already have plenty of powers to make fair dismissals. Giving them the right to act unfairly may go down well on the backbenches, but will horrify employees.”

 

Beecroft has stopped short of suggesting completely eliminating such claims as it would be “politically unacceptable”. Instead he has proposed an alternative regulation under the banner of “Compensated No Fault Dismissal”. The move would allow employers to sack those who are underperforming with basic redundancy pay and notice. However, Beecroft admits that it could lead companies to lay off employees simply for not liking them.

 

Richie Alder, Partner at Trowers & Hamlins, argues that the proposals would bring about a “Draconian” change in the law and would be extremely contentious to implement.

 

“Although the justification for this proposal would be to allow employers a risk free method of weeding out underperforming staff, and is not markedly dissimilar in principle to provisions elsewhere in Europe, it runs contrary to the spirit of employment rights enshrined in the UK,”
he said.

 

The full report is to be officially published later this year.