Leaked govt paper says employment laws are too hard on businesses
Unproductive workers should lose certain rights to claim for unfair dismissal, a leaked government report has proposed.
The paper, which had been commissioned by Downing Street, suggests that easing restraints on firing employees would boost productivity by allowing industrious workers to replace less engaged staff.
"The [current] rules make it difficult to prove that someone deserves to be dismissed, and the process for doing so is so lengthy and complex that it is hard to implement,” the report read.
“This makes it too easy for employees to claim they have been unfairly treated and to gain significant compensation.”
Enforcement of the recommendation is “unlikely”, a Downing Street source told The Daily Telegraph.
Workers can argue they have been dismissed unfairly providing they have worked at a company for more than twelve months. The government wants to extend the minimum threshold to two years, and has said it is committed to reforming employment laws.
The report claims that too many staff are legally allowed to "coast along" in their workplace. It added that businesses are less eager to hire more people due to these problems.