November 08, 2011
Companies should be able to sack unproductive or “lazy” workers without any explanation, a controversial new leaked government report has suggested.
The document, written by venture capitalist and Conservative Party donor Adrian Beecroft, suggests that by letting companies sack without explanation, more capable candidates would replace those sacked, boosting economic growth as a result.
Under current law, employees who feel they were unfairly dismissed can make a claim after spending 12 months in a role, but the study argued this rule should be scrapped. All too often, incapable workers are left to "coast along" and many firms fear expansion because new staff may be "unknown quantities", the report argues.
Understandably, reaction to the report has been mixed, with TUC General Secretary Brendan Barber saying that “scrapping protection against unfair dismissal, even for people who have given years of loyal service, will do absolutely nothing to boost the economy.”
“Indeed, if people are constantly in fear of losing their jobs, it will lead consumers to spend even less,” he added. “While this proposal does nothing for growth, it does show the kind of economy those close to the Prime Minister want to create – one in which nasty bosses are given full licence to undermine those trying to maintain decent standards.”
However, Business Secretary Vince Cable said the "unofficial report" contained "some good ideas" and "one or two controversial" ones.
"No evidence, that I have seen, has advanced the proposition that that would improve labour market flexibility in general. If more can be provided, I am always looking at evidence," said Mr Cable.
According to the Telegraph, who leaked the report, Downing Street was not planning to release the analysis but is now expected to publish it later this year, partly to counter inaccurate reports that suggest the report advocated cutting maternity rights.
