Business Secretary rules out plans for easier dismissals

Business Secretary Sajid Javid appearing on the Andrew Marr show on BBC One. PRESS ASSOCIATION photo
Business Secretary Sajid Javid appearing on the Andrew Marr show on BBC One. PRESS ASSOCIATION photo
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BUSINESS Secretary Sajid Javid has signalled the Government is not planning to revisit plans to make it easier for businesses to sack employees.

The Beecroft report recommended a major relaxation of employment laws, which included allowing firms to dismiss anyone without giving a reason provided they paid compensation.

The report explained an employer could simply state they were not happy with a worker’s performance and then follow a set process, including giving notice and paying a defined level of compensation, without the action being considered as unfair dismissal.

But the “compensated no fault dismissal” approach was blocked by the Liberal Democrats in the coalition government.

Asked if he was planning to use the forthcoming Enterprise Bill to return to some of the Beecroft ideas - including no fault dismissals for small companies - Mr Javid told the Andrew Marr Show on BBC One: “No I won’t be looking at that again. What we will be doing though is looking at deregulation, taking it even further. During the last Parliament we have saved businesses from about £10bn of costs collectively in regulation and I think we can do at least that again.

“I’ve set out some of the examples in a speech I made recently about the kind of things that we can do in reducing red tape - I want to build on those. The other thing I want to do is help more small businesses with some of the challenges they face, not just red tape but especially the issue of late payments.”