Easier staff dismissals on the way in the UK
There is growing concern in the UK that staff dismissal laws are too onerous, in particular for small businesses.
In response, Vince Cable, UK Business Secretary recently announced a package of measures in which the Government hopes to create less red tape for employers wishing to dismiss staff in the first two years of their contract, and encourages disputes being resolved via conciliation, rather than in Labour Tribunals.
Cable said, “Our labour market is already one of the most flexible in the world. This flexibility benefits businesses, staff and the wider economy. But many employers still feel that employment law is a barrier to growing their business. We’re knocking down that barrier today—getting the State out of the way, making it easier for businesses to take on staff and improving the process for when staff have to be let go.” He added, “We know that disputes at work cost time and money, reduce productivity and can distract employers from the day-to-day running of their business. Tribunals should be a last resort for workplace problems which is why we want disputes to be solved in other ways.”
The Government will launch a call for evidence on two proposals. Firstly, it will seek views on a proposal to introduce compensated no fault dismissal for micro firms— with fewer than 10 employees. Secondly, it will look at ways to slim down existing dismissal processes, how they might be simplified, including potentially working with the Advisory, Conciliation and Arbitration Service (Acas) to make changes to their Code, or supplementary guidance for small businesses.
Simplifying the employment tribunals system for businesses will result in fewer claims each year which is expected to save business more than GBP 40 million each year.
Paul Arkwright
Publisher
