Friday 16 March 2012

‘No-fault dismissals’


You may have seen a consultation will be opened for discussion on the UK’s apparently ‘too complex’ dismissal rules this week.

Business Secretary Vince Cable has called on evidence to discuss the idea of ‘no-fault dismissals’ for businesses with fewer than 10 employees, in an attempt to instil new confidence of hiring new staff. This would mean an employee could be sacked with a payment of a set amount of compensation, otherwise a yet to be defined, no fault ‘pay off’.
The Government has said the idea was that small firms would be able to dismiss a worker where no fault had been identified on the part of the employee, without taking into account performance or meeting of targets etc.

We are going to put our two pence worth into the consultation. Our concern is that this will, like the increase of the unfair dismissal qualifying period to two years post 6th April, mean a hike in discrimination claims, i.e. aggrieved employees will look for another route to make a claim against an employer. Furthermore it simply means more hassle, which is the exact notion that the Government is making attempts to combat.

From an individual perspective, would you want to work in a business that could sack you at any point through no fault of your own?