Government Seeks Views on Dismissal Rules

Views are also requested on the idea of compensated no-fault dismissal for micro-businesses (those with fewer than 10 employees).

Under such a system, a micro-business would be able to dismiss an employee where no fault had been identified on the part of the employee, with the payment of a set amount of compensation.

Business Secretary Vince Cable said: “The UK already has one of the world’s most flexible, adaptable labour markets, making it one of our strengths and it stands up very well in international comparisons. However, we recognise that there is room for improvement which balances the needs of business while ensuring that the necessary employment protections are upheld.

“We are already implementing a radical package of reforms to the employment tribunal system and increasing the qualifying period for unfair dismissal from one to two years. These are all measures that will help improve the way businesses hire, manage and end a working relationship.

“We want to give businesses the confidence to hire new staff and make sure when a dismissal needs to be made, they aren’t tied up in red tape. This is an effort to see how extensive the problem is and shed some light on the desire for a change to the rules.”

Through its Call for Evidence, the government is seeking to establish a strong evidence base on the current understanding of the dismissal process, including awareness, understanding and use of the Acas Code of Practice on Discipline and Grievance. The government is seeking the views of employees, business organisations and all other interested parties.

Those wishing to respond to the Call for Evidence should visit the BIS website at www.bis.gov.uk (search by date order for: call for evidence dismissal). The Call for Evidence closes on Friday 8 June 2012.