November 08, 2011
A leaked government report suggests that unproductive workers should lose their right to claim unfair dismissal if sacked by their employers.
The report – commissioned by the prime minister – suggests that this would result in an eventual boost to economic growth, as more capable employees would replace those who would otherwise “coast along.”
Currently, employees who believe themselves to have been unfairly dismissed can make a claim so long as they have been in the role for 12 months. George Osborne has already outlined plans to increase this to two years. However the report, written by venture capitalist Adrian Beecroft, calls for an even stricter line to be taken on unfair dismissal.
The Daily Telegraph reports that the document says: "The rules both make it difficult to prove that someone deserves to be dismissed, and demand a process for doing so which is so lengthy and complex that it is hard to implement.
"This makes it too easy for employees to claim they have been unfairly treated and to gain significant compensation."
The report quickly came under fire from various sources, with Shadow business secretary Chuka Umunna saying: "We've got 2.57 million people unemployed in this country.
"I find it absolutely extraordinary that the government should be preoccupying itself with how it can make it easier to fire people when in that context it should be looking at how it can make it easier to hire people."
According to the Ministry of Justice, the cost to the taxpayer of running employment tribunals and the Employment Appeal Tribunal in England, Wales and Scotland last year was more than £84m.
