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CIPD: Beecroft plans could hamper economic growth
HR News |
11/06/2012
Government plans for a system of compensated no-fault dismissal are "objectionable and unnecessary", according to a leading HR body.
The Chartered Institute of Personnel and Development (CIPD) has criticised Adrian Beecroft’s proposal for regulatory change, and urged ministers to focus their priorities elsewhere.
Mike Emmott, employee relations adviser at CIPD, commented that watering down employment regulation is "not only damaging for employee relations but will also fail to achieve the intended result".
“We know that employers don’t spend all their time worrying about unfair dismissal claims," he stated.
"In fact, according to the government’s own research, unfair dismissal doesn’t even figure in the list of top ten regulations discouraging them from recruiting staff."
Mr Emmott said the Beecroft proposals are objectionable because a system of compensated no-fault dismissal would be "a licence for bad practice in managing people".
This could potentially damage the reputation of the whole micro-business sector, he suggested.
"It is unnecessary because employers facing a possible tribunal claim can already offer the employee a compromise agreement, and tailor the level of compensation to the particular circumstances," Mr Emmott added.
The CIPD expert noted that countries that have excluded small businesses from unfair dismissal regulations such as Germany, Australia and Spain have generally found it has failed to achieve the intended result.
"There is no evidence that no-fault dismissal would make a positive contribution to economic growth in the UK by encouraging the smallest firms to recruit more employees," Mr Emmott said.
"Indeed, by increasing job insecurity and reducing employee engagement it would be more likely to damage growth."
Posted by Jon Aspinell
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