Businesses fail to support no-fault dismissals
Wednesday, 4 July 2012
A proposal which would have introduced compensated no-fault dismissals will not be brought in after it only received support from a third of businesses.
It was a key recommendation in a government-commissioned report written by venture capitalist Adrian Beecroft and has now been left out of the Enterprise and Regulatory Reform Bill.
The news could be a boost to employee morale after just 38 per cent of 135 employers used in a consultation group gave their backing to the plans.
Steve Radley, director of policy at EEF, the manufacturers' organisation, said: "Government is right to reject proposals for no-fault dismissal as a red herring. The case for it is far from proven, with limited benefits and no evidence that it would increase recruitment."
Alexander Ehmann, head of regulatory affairs at the Institute of Directors, said that there was no evidence to refute the assertion that no-fault dismissal leads to more hiring.
