A report, commissioned by the Prime Minister and compiled by Adrian Beecroft, includes the following proposals:
- An end to a mandatory 90-day consultation period when a company is considering redundancies of over 100 employees. The report suggests a 30-day period and an emergency five-day period if a firm is in severe distress.
- A cap on loss-of-earnings compensation for employees who make successful claims for discriminatory dismissal.
- Allowing harmonisation of employee’s terms and conditions if they transfer to a new company following a takeover.
- Scrapping provisions in the Equality Act which make employers liable for claims from employees for "third-party harassment".
- Shifting responsibility for checking foreign workers` eligibility to work in the UK from employers to the Border Agency or to the Home Office.
- To bring in “no-fault dismissal.” This proposal prescribes that in circumstances where an employee is underperforming it would not be an unfair dismissal if the employer simply states he is not happy with the employee’s performance and then consults, gives notice and pays a defined level of compensation linked to the employee’s salary and length of employment.
Business Secretary, Vince Cable, told the BBC his view on the Beecroft report: "Most of it is pretty uncontroversial, but there`s one bit which is this so-called `no-fault dismissal.’ I don`t see the role for that. Britain has already got a very flexible, cooperative labour force. We don`t need to scare the wits out of workers with
threats to dismiss them. It`s completely the wrong approach."
As part of the ongoing review of employment law, evidence will be examined to see whether firms with fewer than 10 employees would favour the no-fault dismissal rule.