Speaking at the EEF Manufacturers’ Dinner on 6th March, Osborne said: “Of course, employees have rights and should be protected. But what about your right to start a business and not be sued out of existence? And now we’re beginning a call for evidence on the case for a new compensated no-fault dismissal for our smallest businesses. Plenty of trade unions and others will be submitting their evidence for why we shouldn’t do this. If you think we should, and it will increase employment, then don’t wait for someone else to send in the evidence. Send it in yourself.”
The proposed “compensated no-fault dismissal” system was originally outlined in the leaked set of recommendations put together in November 2011 written by venture capitalist Adrian Beecroft and reportedly commissioned by David Cameron.
John Read, employment law editor at XpertHR, suggested that this statement overlooks the fact that employers cannot be “sued out of existence” unless they treat their employees badly and suggests that bad employers will be the only parties who are protected by the introduction of no-fault dismiss- als. He said: “.....When it comes to unfair dismissal, employers have only to act reasonably in the circumstances to dismiss an employee fairly”. Small employers might be panicked about employment law and unfair dismissal in particular, how- ever, Empire are here to provide you with any help and advice you may need in all areas of employ- ment legislation.
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