Monday, 21 May 2012

Vince Cable calls sacking plans in Beecroft report 'the wrong approach'

A report commissioned by the prime minister is also expected to call for shorter periods of consultation over compulsory redundancies.

But Mr Cable told the BBC it was not the job of government to "scare the wits" out of people.
Many Tory MPs back the plans as a means to boost the UK's businesses.
The economy re-entered recession in the first quarter of this year and the coalition government is looking for ways to encourage growth.

The report, which will be published later on Monday, was compiled by Conservative-supporting venture capitalist Adrian Beecroft.
Its proposals are expected to include:
  • An end to a mandatory 90-day consultation period when a company is considering redundancy programmes. Instead it will suggest a standard 30-day period and an emergency five-day period if a firm is in severe distress
  • A cap on loss-of-earnings compensation for employees who make successful unfair dismissal claims
  • Reform of the rights that workers are allowed to "carry" to new employers when their companies are the subject of a takeover
  • Scrapping provisions in the Equality Act which make employers liable for claims from employees for "third-party harassment", such as customers making "sexist" comments to staff in a restaurant
  • Shifting responsibility for checking foreign workers' eligibility to work in the UK from employers to the Border Agency or the Home Office
The study follows David Cameron's call for British industry to be freed from "red tape".
Changes to employment law, it is argued, would improve the supply of suitable staff to firms, who would be less afraid of having to make large payouts or face legal action when laying off those who are no longer needed.

The theory is that firms would hire more staff and the change would make the UK a more attractive place to start and grow a business.

The plans, which have not been accepted by the prime minister, have been portrayed as a source of tension between Conservatives and Liberal Democrats. Read More

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