Report Calls For Scrapping Of Unfair Dismissal

A Government commissioned report has urged for the scrapping of an employee's ability to file claims of unfair dismissal.

The report, written by venture capitalist Adrian Beercroft, claims more capable people would replace those sacked, boosting economic growth.

The report comes as the Government continues its Red Tape Challenge campaign, which has already scrapped a number of regulations on businesses. Under the policy drive earlier this month, George Osborne extended the moratorium on claims for unfair dismissal to two years.

Responding to the latest report, TUC General Secretary Brendan Barber said that scrapping protection against unfair dismissal, even for people who have given years of loyal service, will do absolutely nothing to boost the economy.

"If people are constantly in fear of losing their jobs it will lead consumers to spend even less," Mr Barber said.

He added: "But while this proposal does nothing for growth, it does show the kind of economy those close to the Prime Minister want to create - one in which nasty bosses are given full license to undermine those trying to maintain decent standards.

"The clue is in the name. Employers already have plenty of powers to make fair dismissals. Giving them the right to act unfairly may go down well on the backbenches, but will horrify employees."

Mr Beercroft's controversial report suggests an overhaul of UK employment laws, claiming that incapable workers were being left to "coast along" while the right to claim unfair dismissal was limiting the expansion of firms because new staff may prove "unknown quantities" while being "impossible" to sack.

Paul Kenny, general secretary of the GMB union, said the report showed the true face of the "nasty" Tory Party.

"This report shows the true face of the nasty Tory Party who are, in fact, the political wing of the rich and the elite. That is why Tories have yet to make any move to curb the greed of bankers and financiers who had to be bailed out with billions of pounds of public funds."

(DW)