A new report, (which has not been made public, but has been widely leaked) has recommended that unfair dismissal regulations should be radically revised or scrapped.
The report by venture capitalist and Conservative party donor Adrian Beecroft has stated that employers should be able to dismiss unproductive workers. The report states that current unfair dismissal law makes it much harder for employers to get rid of employees who “coast along”.
It is argued that the change would boost the economy and encourage employers to take on new staff.
The current law states that an employee must have 12 months continuous employment to qualify for unfair dismissal protection. However, the government has already stated that in April 2012 an employee will need 24 months employment with an employer to rely upon unfair dismissal protection.
The report states that employers are finding the process of dismissing unproductive workers too difficult and that the problem of poor workers is particularly serious in the public sector.
It is difficult to say how much of this report is driven by political dogma, though targetting the public sector does hint at political views informing the report. The author also clearly has his own personal views and this is therefore a highly partial report, or even a manifesto dressed up as a report.
However, that said a great many employers do find it hard to dismiss employees, and not just those who do not work properly. There are a significant number of employers who wrestle with dismissing employees who have committed acts of gross misconduct, such as theft or even violence.
There are clearly defined steps that an employer must take when disciplining or dismissing an employee, these must be followed. Furthermore employees have a right of appeal against dismissal. Every employer should have a written Grievance & Disciplinary Policy.
We would argue that following these procedures can be time consuming and stressful for employers – particularly small and medium sized organisations. These are the very organisations that will fuel an economic recovery and are our real economic future. (Large multi-national companies by the way they operate will contribute less and less back into our economy as they shift to lower tax, lower regulation and cheaper labour territories.)
Large companies also have their own HR departments and can use their experience and economic muscle to tackle any employment law related issue.
The current regulations could be simplified, though this may not be the only issue here.
A significant issue is the threat of defending expensive employment tribunal claims. As we have become a more litigious society there has been a rise in spurious claims driven by “no win no fee” litigation. No win no fee was originally brought in to allow greater access to justice as legal aid was effectively withdrawn.
However, there has been a rise in what we call “drive-by law”. We see frequent examples of employers following all the procedures required and dismissing employees correctly. These employers then receive letters from a no win no fee operator threatening to bring an employment tribunal claim. These letters are purely intended to force a quick “settlement”. There is no intention of bringing a claim, the letter is intended to rattle an employer and see what can be extracted from them. This ploy frequently works.
The introduction of fees from April 2013 for bringing an employment tribunal claim will help to reduce the number of spurious claims being threatened or brought. We would argue that the fees should be introduced much sooner – as in Jaunary 2012.
Unfortunately there are a significant number of employers who treat their staff badly, and employees must have proper redress in these circumstances. Likewise regulations must be made easier to comply with, but they should for the most part remain in place.
For every public sector worker who coasts there are probably three others who undertake unpaid overtime, mainly to take up the slack caused by the other employee.
Regarding reduced productivity this may be made worse by poor management not tackling the issue early on. Employers need simple and swift procedures to follow and if necessary training to follow them.
If we can make employer and employees rights and responsibilities more clear it can only help both parties.
This report does add to the debate, just not a lot.
Related: Employer’s Staff Handbook
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