Member Article

Drop “no-fault dismissals” say EEF

The EEF is calling on the Government to drop plans for ’ no-fault dismissals’ over fears that the proposal could be counter productive.

The manufacturing organisation has supported Government plans to make the labour market more flexible, but is unconvinced by the case for no-fault dismissal. The plans, detailed in the Beecroft Report, would allow employers to sack workers at will. They have come under increasing scrutiny from both politicians and businesses who believe that the controversial proposals could have a “chilling effect” on the labour market.

Commenting on the proposals, Terry Scuoler EEF chief executive said: “We’ve found little support from industry for introducing no-fault dismissal, its benefits look pretty limited and we’ve seen no evidence that it would increase recruitment.

The organisation is now urging the Government to focus on some of the less controversial ideas in the report including accelerating plans to reduce the 90 day consultation period for collective redundancy to 30 days, streamlining employment tribunals and simplify rules to protect workers’ pay and jobs.

Employers should also be offered help to manage relations with employees more effectively by introducing more “protected conversations”, to allow both sides to discuss performance without triggering the risk of legal action.

Scuoler added: “We are concerned that the controversy over no-fault dismissal is distracting attention from the issues that really matter to business.

“The government has many good ideas on collective redundancy, employment tribunals, Tupe and compromise agreements and it now needs to get on with implementing them before moving any further on no-fault dismissal.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .