The EEF manufacturing organisation is calling on the Government to dismiss controversial plans suggested by Adrian Beecroft to allow employers to sack workers at will and to focus instead on other areas of employment reform.
In a formal submission to Business Secretary Vince Cable today, ahead of the closure of the “call for evidence” on Friday, the EEF indicates that the concept of compensated no-fault dismissal commands little support from Industry, that its benefits would be limited and that it would make little or no difference to recruitment plans.
It also states that the proposals risk undermining the gains that employers have made in increasing flexibility and productivity by working more collaboratively with their employees.
Concerned that the controversy over this issue is diverting attention from these other proposals, the EEF sets out a five point plan for employment reform, which advises accelerating plans to speed up the collective redundancy consultation period, streamlining the Tribunal system, simplifying TUPE regulations, encouraging compromise and clarifying plans for shared parental leave.
In the submission, chief executive of the EEF, Terry Scuoler says: “The government is right to focus on making our labour market more flexible, but the case for no-fault dismissal is far from proven.
“We’ve found little support from industry for introducing no-fault dismissal, its benefits look pretty limited and we’ve seen no evidence that it would increase recruitment. The government now needs to take a hard look at whether the claims for its benefits are real and at the risk of damaging employment relations.”
Scuoler adds: “We are concerned that the controversy over no-fault dismissal is distracting attention from the issues that really matter to business. The government has many good ideas on collective redundancy, employment tribunals, TUPE and compromise agreements and it now needs to get on with implementing them before moving any further on no-fault dismissal.”