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Dismissing Lazy Employees

27th October, 2011

A leaked government report has created uproar in the employment sector by suggesting that unproductive employees should lose their right to claim unfair dismissal.  The report, obtained by the Daily Telegraph, argues that this would mean that more capable people would replace those sacked, thus boosting economic growth.  It is suggested in the report that “in the long run it will increase employment by making businesses more competitive and hence more likely to grow.”

The author of the report was Adrian Beecroft, a venture capitalist and Conservative Party donor.  Mr Beecroft says that under current rules employees can “coast along” with some proving impossible to sack.

Mr Beecroft recommends a Compensated No Fault Dismissal regulation, which would allow employers to sack unproductive staff with only basic redundancy pay and notice. He does however concede that the new scheme could lead to employers firing staff because they “did not like them”.  The report, commissioned by David Cameron, says that current rules on unfair dismissal impacts terribly “on the efficiency and hence competitiveness of our businesses, and on the effectiveness and cost of our public services.”  It goes on to say that the rules make it difficult to prove that someone deserves to be dismissed and the process now is so lengthy and complex it makes it hard to implement.

This comes just weeks after the Chancellor George Osborne announcing new measures to restrict the number of unfair dismissal claims.  From April 2012 an employee must have two years continuous employment before being able to bring an unfair dismissal claim and from 2013 fees will be introduced to a tribunal claim.

Trade Unions have attacked the report, warning that the move would “horrify” workers.  Sarah Veale, Head of the Equality and Employment Rights department at the TUC, said that the proposals were “profoundly unjust” and that the Prime Minister should “throw the report straight in the bin.”  According to the Daily Telegraph, Downing Street was not planning to release the analysis but the report is now expected to be published later this year.

 

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