15 March 2012 #Employment
The government has today announced proposals to examine workplace dismissal procedures for small businesses with a publication of a Call for Evidence. The government is seeking views from employers, employees and interested parties on two measures.
Firstly, whether existing dismissal rules and the ACAS Code of Practice are too complex or misunderstood and how they might be made simpler, quicker and clearer.
Secondly, on the concept of ‘compensated no-fault dismissal’ for micro-businesses with fewer than 10 employees. Under this system, such a business would be able to dismiss a worker where no fault had been identified on the part of the employee, with the payment of a set amount of compensation.
The government’s objective is to strike a balance between the need to give workers enough support and clarity about what is expected of them to perform to an acceptable standard and the need for employers, especially small businesses, to dismiss poor performers without unnecessary bureaucracy.
The CIPD has warned that the compensated no-fault dismissals could create a perverse disincentive to economic growth because micro businesses might be discouraged from hiring their tenth employee.
These proposals form part of the government’s drive to improve the way businesses hire, manage and end relationships with employees. Increasing the qualifying period for the right to claim unfair dismissal to two years from 6 April 2012, is one such measure which the government believes will provide employers with greater confidence to recruit new employees