The recent leaked report proposing to empower employers to ‘sack the slackers’ without further ramifications has promoted a huge response from unions and organisations alike.
Recent leaked reports by venture capitalist Adrian Beecroft acting on behalf of the government suggesting that employers should be empowered to sack staff if they are underperforming without explanation have inflamed unions who argue that scrapping of this legislation will do nothing to help promote growth.
TUC General Secretary Brendan Barber said:
“Scrapping protection against unfair dismissal, even for people who have given years of loyal service, will do absolutely nothing to boost the economy. Indeed if people are constantly in fear of losing their jobs it will lead consumers to spend even less.
“But while this proposal does nothing for growth, it does show the kind of economy those close to the Prime Minister want to create - one in which nasty bosses are given full license to undermine those trying to maintain decent standards.
“The clue is in the name. Employers already have plenty of powers to make fair dismissals. Giving them the right to act unfairly may go down well on the backbenches, but will horrify employees”[1].
Masking the real problem
Similarly, the CIPD have suggested that the government must address poor productivity by helping employers develop and nurture greater ‘skills for growth’, not scrap unfair dismissal rights.
Katerina Rüdiger, the CIPD’s skills policy adviser said:
“Headline grabbing proposals which call for making it easier to ‘sack the slackers’ are at risk of masking the real question we should be asking: why are so many UK workers still underperforming? The reason is not stringent employment legislation – indeed the UK has one of the most de-regulated labour markets across OECD countries – but a crisis of management and leadership skills. Firing underperforming workers does not address the root cause of this problem; the Government should instead focus on supporting employers to improve management capability. One third of the UK’s workforce has managerial responsibilities so it’s not difficult to see the potential for improved management and leadership capabilities to unlock productivity and address the problem of workplace performance in a way that works for everyone: employers, individuals and the UK economy”[2].
A storm in a tea cup?
However, while these proposals have provoked a strong reaction from a number of organisations, Amy Paxton, senior employment consultant at Croner suggests that is is important to remind people that these are only proposals and are not yet law.
“What we would remind employers is that it is only a draft report and until anything is finalised, there are no indications that they should not be duly concerned with the proposals.
“In our experience we would be very surprised if these proposals are implemented as they would not be beneficial to either employers or employees.
“Recent announcements on proposed changes to legislation may make inroads into changing the ways that employees can be dismissed, including the extension of the unfair dismissal qualifying period which comes into effect in April 2012.
“We should also not forget the bigger picture here, there are other costs associated with firing and hiring such as recruitment and training costs and therefore the suggestions contained within the leaked report may make little financial difference to the employer.
“Employers with poor performing staff should look at their performance management policies and procedures. Often training and development can solve issues in a low cost and effective way, thereby forgoing the need to dismiss”[3].
The full report will published later this year.
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[1] www.tuc.org.uk/equality/tuc-20206-f0.cfm
[2] www.cipd.co.uk/pressoffice/_articles/Workhorizonsreport311011.htm
[3] www.croner.co.uk