Proposals to examine the current dismissal process were announced by the Government last week with the publication of a Call for Evidence. Ministers are to seek the views of employers and employees, and gather evidence from interested parties, on whether current dismissal procedures are too onerous, too complex and whether or not there is a lack of understanding in their application.
Views are also requested on the idea of compensated no-fault dismissal for micro-businesses with fewer than 10 employees. Under such a system, a business would be able to dismiss a worker from a micro-business, where no fault had been identified on the part of the employee, with the payment of 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. We are already implementing a radical package of reforms to the employment tribunal system and increasing the qualifying period for unfair dismissal from one to two years. These are all measures that will help improve the way businesses hire, manage and end a working relationship. But we also 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.”
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.