Government seeks views on dismissal rules
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15 March 2012 - BIS
Proposals to examine the
current dismissal process have been announced by the Government today
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
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
“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.”
Through the Call for
Evidence, the Government is seeking to establish a strong evidence base
on the current understanding of the dismissal process, including
awareness, understanding and use of the Acas Code of Practice on
Discipline and Grievance. The Government will be seeking the views of
employees, business organisations and all other interested parties.
The Government have also
published the Employment Law Review annual update in the Houses of
Parliament, outlining how the review has been taken forward. The report
summarises the current programme and looks ahead to further areas we
are considering as part of the Review.
In addition, it was also
announced that the Employer’s Charter, first published in January 2011,
has been updated to include pointers on sickness absence and
recruitment. The Charter aims to counter the misconception that
employment protections are all one-way - towards the employee. It will
give greater clarity to managers on what they can already do to deal
with issues in the workplaces, on subjects such as performance, sick
leave, maternity leave, requests for flexible working and redundancy.
1. The Call for Evidence on ‘Compensated No Fault Dismissal’
and the Acas Code of Practice on Discipline and Grievance can be found
It will close on 8 June 2012.
2. The Employment Law Review is a Parliament long review
looking at all aspects of employment law and is part of the
Government's plans to deliver growth by breaking down barriers,
boosting opportunities and creating the right conditions for businesses
to start up and thrive. Achievements so far can be found here
3. The Employment Law Review annual update and the Employer’s
Charter can be found here
4. A recently published labour market discussion paper
entitled, ‘Flexible, effective, fair: Promoting economic
growth through a strong and efficient labour market,’ can be
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2012-03-20 12:22:26 in Business Articles