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IoD pushes for compensated no-fault dismissal in employment law

30th May 2013

The measure, whereby smaller business could dismiss – with compensation – underperforming or unwanted members of staff without identifying a fault in their work, was originally put forward by Adrian Beecroft in 2011, but it received negative responses from unions and many employment lawyers.

Dubbed, the “fire at will” law, the proposal was one of three employment law changes which the IoD see as fundamental in aiding the revival of UK businesses during the ongoing economic downturn.

The IoD called for the bill to be proposed in the Queen’s Speech, but this was directly in opposition with business secretary Vince Cable’s stance on the matter, as he has already cited the notion as “complete nonsense”.

Simon Walker, Director General of the IoD said, “This is probably the Government’s last chance in this Parliament to announce new legislation to boost businesses and the economy. Nearly half of businesses think that regulation is holding them back. Ministers must seize this opportunity to tackle the issue head-on.”


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