Lawyers condemn dismissals report

A LEADING trade union lawyer has denounced a report which aims to increase flexibility in the UK labour market as a “vicious and calculated attack on the rights of working people”.

Jamie Hanley, of Leeds-based Morrish & Co, made the comments after the Government published a final report by venture capitalist Adrian Beecroft, which includes proposals to introduce compensated no-fault dismissals.

Mr Hanley said: “Our country already has the third most relaxed labour market in the OECD and we are the most flexible in Europe – there is no evidence at all to suggest that undermining the rights of ordinary hard working people will help businesses through this recession and difficult trading times.”

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Andy Gilchrist, the head of employment at Leeds-based law firm Lupton Fawcett, said: “The proposals for compensated no-fault dismissals, which the Government is considering in relation to micro businesses with fewer than 10 employees, would, if implemented, allow employers to dismiss underperforming staff by paying compensation calculated in a similar way to redundancies and so based on age, length of service and salary.”

Mr Gilchrist said that no-fault dismissals significantly eroded employee rights, and could be opposed by voters and trade unions.

He added: “A number of the proposals are likely to be diluted to make them politically acceptable, while others may be rejected altogether.”

Tracey Marsden, a partner at Nabarro in Sheffield, said the report, in some respects, failed to appreciate how employment laws inter-relate, although some smaller businesses would welcome the proposed changes such as no-fault dismissals.

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In response to the publication of the Beecroft report, Business Secretary Vince Cable said: “At a time when workers are proving to be flexible in difficult economic conditions, it would almost certainly be counterproductive to increase the fear of dismissal.”

The Government is calling for evidence on no-fault dismissals for firms with less than 10 staff.

Mr Cable will examine the evidence when this is submitted after June 8.

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