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Employment law changes cause ‘hire and fire’ concerns

Recent changes to employment law will not spark a “hire and fire” frenzy, suggests a director at the Recruitment and Employment Confederation.

On Good Friday, the Government increased the qualifying period for protection from unfair dismissal from one to two years.

Tom Hadley, Director of Policy & Professional Services at the REC, says: “Employers want to recruit and retain good staff, anything else is costly and a waste of time and effort

Robin Chater, Secretary-General of the Federation of European Employers also voiced his support for the measures, appearing on the BBC Breakfast Programme last week.

Mr Chater argued that offering too high a level of employment protection only dissuades employers from creating permanent jobs.

Drawing on experience from the Spanish economy, Mr Chater said 80% of jobs generated in the last five years in Spain have been temporary and due to the growing crisis, high proportions are not being renewed.

Simon Walker, Director General of the Institute of Directors, said: “This is a sensible move which will help to get more people into work, by reducing employers’ fears about the high costs of excessive employment protections.

“Almost half our members have told us they are more likely to take on extra staff as a result of this change, and that will be welcome news to many people looking for work.

“The one year qualification period may have been well intentioned, but its effect was to put people off taking on new employees. Extending the period to two years will help to create more jobs, that is the bottom line.”

Trade Union Congress argued that 2.7 million workers are at increased risk of losing their jobs under the new qualifying period rules, and say there is little evidence that changes to law are a top priority for employers.

TUC General Secretary Brendan Barber said: “The government’s proposals to weaken unfair dismissal rights risk generating a ‘hire and fire’ culture in the UK and will lead to the creation of insecure employment which is here today and gone tomorrow.

“Cutting back on protection against unfair dismissal will do nothing to boost the economy. If people are constantly in fear of losing their jobs it will lead to even less consumer spending, and losing your job is one of the worst things that can happen to anyone, especially when unemployment is so high.

“Businesses have told the government that above all they need the economy to be growing and the banks to get lending again. The government appears to be reacting to pressure from backbench Conservative MPs rather than actual business concerns.”

This was posted in Bdaily's Members' News section by Tom Keighley .