Wednesday 2 November 2011

Leaked Beecroft Report - Carl Fender, Barrister at Regency Chambers

Our employment laws on unfair dismissal seek to strike a balance between both sides of the employment relationship.  Nowhere is this seen more starkly than in the employment tribunal itself, with employer and employee representatives providing valuable lay experience from their own workplaces.  The leaked Beecroft report on reform of our dismissal laws has caused reaction from both sides of the debate.  In particular, the Government has been advised by the report's writer (a City businessman) that businesses face disproportionate difficulties in removing unproductive staff. The cost to businesses in defending unfair dismissal claims is excessive and there ought to be a faster and more cost effective means of removal of such staff.

Is this not an example of opportunism in the current financial climate?  Surely the same argument could be made in times of economic prosperity as well, but has not been.  We have a law that permits an employer to dismiss for an employee's lack of capability and underperformance in s.98 Employment Rights Act 1996.  If businesses are being run efficiently, and employees being managed appropriately, employers should be able to prove a tribunal subsequently that its decision to dismiss was the correct one.  Would this proposed new law not also contribute to employees feeling less valued i the workplace?  Employees who feel valued in the workplace, and are supported by employers through good management, are more likely to be better performers.  Arguably these new proposals tip the balance too favourably towards employers.

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