The employment proposals set out in the Beecroft Report, including the controversial ‘no-fault dismissal’, have been deemed ‘objectionable and unnecessary’ by the Chartered Institute of Personnel and Development (CIPD), reveals company secretarial services firm London Registrars (http://www.london-registrars.co.uk/).
The CIPD is just one of many organisations to criticise the ‘no-fault’ Beecroft proposal, part of the Government-commissioned report, which allows UK businesses with ten employees or fewer to dismiss an employee with a payment of compensation in return for that employee never bringing a tribunal claim against the company. The government claims that the proposal will benefit the job market because employers can hire and fire without fear of recrimination in the form of unfair dismissal claims.
However, the CIPD believes that in fact it will do nothing positive for recruitment. Mike Emmott, CIPD Employee Relations Adviser, told ICSA Magazine, “We know that employers don’t spend all their time worrying about unfair dismissal claims. According to the Government’s own research, unfair dismissal doesn’t even figure in the list of top 10 regulations discouraging them from recruiting staff. Adrian Beecroft’s proposal for a system of compensated no-fault dismissal is objectionable because it would be a licence for bad practice in managing people and damage the reputation of the whole micro-business sector [employers with fewer than 5 employees]. It is unnecessary because employers facing a possible tribunal claim can already offer the employee a compromise agreement, and tailor the level of compensation to the particular circumstances”.
The Institute of Directors (IoD) does want this controversial proposal implemented, however, believing that the Government is not being swift enough when it comes to employment law reform, something which is hampering the growth of business in the UK. Director General of IoD, Simon Walker, stated that “Beecroft’s recommendations are encouraging, and the Government should back him strongly. Less red tape means more jobs”.
London Registrars offers a comprehensive corporate and legal support service to UK companies, including advising on matters of employment law and on the role of company secretary. To find out more, go to http://www.london-registrars.co.uk/.