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No Fault Dismissals

Posted on Jun 05, 2012 by Hannah Roche  | 0 Comments

Employment law hit the news again in the last couple of weeks when the Government-commissioned report by Adrian Beecroft   was issued ahead of schedule due to a leak.  The report has caused controversy amongst the Unions, the Law Society and not least, Business Secretary  Vince Cable, by introducing the idea of “no-fault dismissals”.  The introduction of this concept would allow employers to dismiss employees without giving a reason so long as the employee received a set amount of compensation, without the risk that the employer would be sued for unfair dismissal.

I’m sure most of us can think of situations when the ability to make a “no fault dismissal” would be beneficial to the employer, and perhaps even the employee!  However, it doesn’t take a crystal ball to see that such a concept would be vulnerable to abuse by unscrupulous employers dismissing for discriminatory reasons such as pregnancy, disability etc.  So,  while it’s unlikely that such a concept will become law, at least not for businesses with 10 staff or over (as Mr Cable has said) there’s no doubt that there has been a business back-lash against a body of employment legislation which is seen to be over-regulated and pro-employee.  What’s not in doubt that employment is in for (yet more) change!

The Government has called for evidence on whether employers and employees think there’s a need for “no fault dismissals” in micro-businesses (those with fewer than 10 staff).  If you’d like to have your say, you’ve got till 8 June to do so.  Follow this link    Other changes recommended by Mr Beecroft include changes to the TUPE Regulations, reducing consultation periods for collective redundancies and revoking the third party harassment provisions in the Equality Act.

As ever, if you’d like any further information on the above, please get in touch.

Hannah Roche

Head of Employment

hannah.roche@mbmcommercial.co.uk

0131 226 8216

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