Monday, 21 May 2012

Government 'to drop no fault dismissal'

This week LNUK reported that Vince Cable's Department seemed to be lobbying against a Government proposal to introduce 'no fault dismissal'. The good news it seems is that the Government is to back track on a plan Cable is reported to have called, 'Bonkers' in private. A lack of support from business leaders and a furious backlash from Cable, who has warned ministers that the proposal would leave a "dead hand of fear" hanging over employees, is expected to persuade No 10 that the proposal should be quietly dropped later this summer. Damian Collins, a Conservative MP who has edited a report called the Growth Factory, told the World at One: "I think businesses and people out of work would want us to consider any policies that might encourage small businesses to take on more staff … Lord Oakeshott should let some of his colleagues read the report and talk to businesses in their constituencies and see what they think." The prime minister gave no indication of a climbdown on Sunday night when he said he was still interested in the Beecroft proposal that employers should be allowed to sack unproductive staff without explanation, known as no-fault dismissal. "On the issue of no-fault dismissal and other proposals like that, I am interested in anything that makes it easier for one person to say to another person: 'Come and work for me,' because we need to make our economies flexible," the prime minister said in Chicago. Oakeshott the former Liberal Democrat Treasury spokesman, who is an adviser to Cabletold Radio 4's The World at One: "It would be bonkers – a sack-on-the-spot mentality … All Liberal Democrats are against a sack-on-the-spot mentality and it won't happen." Hopefully, The Guardian is correct when it says that the Conservatives will be persuaded to drop the much maligned policy. By Charles Price, Barrister

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