Reaming in the red tape

  10th September 2012      
 Company News

The government plans to make life easier for many of the UK’s smaller businesses with a radical move to cut red tape and regulations.

This will include a change to employment laws that will make the procedure to fire staff much easier and cheaper which has come under scrutiny by employment groups. They are concerned that this is an attempt to get the controversial “no fault” dismissal plan through via the back door, previously shelved earlier in the year, which was seen as allowing small companies to fire people without blame. Employment groups also feel that these measures will hamper job security to employees and confidence in the employment market overall.

However ministers believe that to really step up growth plans in the economy new measures are vital which would includes dealing with the “burdensome” and “expensive” problem of getting rid of unwanted staff.

Michael Fallon, a key ally of David Cameron explained “We need to get away from the adversarial, expensive and cumbersome tribunal system and make it much easier and quicker for people to reach negotiated settlements.”

The employment reforms are due to be announced later this week. They are expected to include new guidelines suggesting that companies and staff resolve disputes through voluntary settlements, rather than complex tribunals and give reasonable direction on how to proceed in this matter.

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