Duncan Lewis

Romford Office

Crime and Civil cases

house 40 staff

The British Manufacturers organization has called the government to focus on other areas of employment reforms rather than on ways of sacking workers under no fault dismissal

Date: (6 June 2012)    |    

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EEF Manufacturing organization’s has called on government to focus on other areas of employment reform other than just concentrating on sacking of workers at will which they warned would prove counter productive.
The controversial plans of the government which proposed allowing employers to sack workers at their convenience seem to be facing a major blow with the manufacturer’s rider.
In a major boost to Vince Cable, who is expected to kill off the idea proposed by the Tory donor Adrian Beecroft, the EEF manufacturing organisation called on ministers to focus on other areas of employment reform?
The EEF, whose annual dinner was addressed by the chancellor, George Osborne, in March, turns on the so-called "no-fault dismissal" proposal in a formal submission to the government.
Cable had agreed to hold a formal six-month "call for evidence", ending this Friday, into whether the Beecroft proposal should be introduced for small companies having less than 10 people.
The move by Cable was a compromise between the coalition partners after the Lib Dems warned that the most controversial proposal in a report by Beecroft would have a "chilling effect" on the labour market. Steve Hilton, the prime minister's long-standing policy guru, regarded the idea as an important way to help promote economic growth.
Terry Scuoler, the EEF chief executive, supporting Cable had submitted his views to the business department saying that the government was right to focus on making the labour market more flexible, but the case for no-fault dismissal was far from proven. He added that the industry was not supporting the idea of no fault dismissal as it feels the benefits were pretty limited and that there was no evidence that it would improve recruitment.
The manufacturers called on the government to focus on some of the less controversial ideas in the Beecroft report as it sets out a five-point plan for employment reform
Scuoler added that the industries were concerned that the controversy over no-fault dismissal was distracting attention from the issues that really mattered 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.