Radical reforms to unfair dismissal rights proposed
Friday 28th October 2011
Major changes to the rights of employees to claim that they have been unfairly dismissed have been proposed in a leaked Government report.
The report, commissioned by the Prime Minister and prepared by the venture capitalist Adrian Beecroft, criticises the current unfair dismissal rules. It argues that greater certainty for employers could be achieved by allowing them to dismiss employees without a reason and linking the compensation payable to a statutory formula. Under the proposals, employers would no longer risk a claim of unfair dismissal if they failed to show they had a fair reason and followed a fair process.
These proposals form part of a general trend of Government reviews of employment law which are designed to promote enterprise and economic growth. Earlier this month, the Government stated that it intends to restrict the right to bring a claim of unfair dismissal to employees who have two or more years of continuous employment, and to introduce fees for bringing tribunal claims. Please click here http://www.ashfords.co.uk/news/employment_update_19oct11 for more detail on these proposed changes.
The Government has not yet confirmed whether the report's recommendations will be implemented and, if so, when this will be. The next step will be the publication of the report, which was originally to be for internal Government use only, but which is now expected to be released later this year. Early indications show that any reforms of this kind will be resisted strongly by the unions.
Even if the changes are introduced, they will not remove the need for employers to develop and follow proper policies and procedures. Most notably, employees could still allege that their dismissals were discriminatory. Faced with such an allegation, the employer would require documentary evidence that the dismissal was for a non-discriminatory reason.
For further information, please contact Charles Pallot on 01392 333906 or c.pallot@ashfords.co.uk
Ashfords LLP is Authorised and Regulated by the Solicitors Regulation Authority. The information in this note is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.
