Businesses are to be given greater power to dismiss under-performing employees as part of an overhaul of employment laws, the government has announced.
According to the prime minister David Cameron, changes to Britain’s employment law will help boost the economic recovery and the new ‘employers’ charter’, will enable companies to fire workers within the first two years of their employment, without the threat of being taken to a tribunal for unfair dismissal. Currently an employee can claim for unfair dismissal after just one year’s employment.
The government is planning to launch a review that is likely to see small firms excluded from some of the stricter employment laws, the Daily Telegraph has revealed. Furthermore, the length of time businesses have to pay workers statutory sick-pay is also set to be cut as part of the review.
Mr Cameron said: “We can only get our economy back on track by creating a climate in which the private sector can grow and develop, creating jobs and opportunities for people across the country. This year the government is determined to help deliver many thousands of new jobs and I’m delighted that the companies joining me today are part of that.
“Across a whole range of areas you’re going to see the most pro-business, pro-growth, pro-jobs agenda ever unleashed by a government.”
The government has said that it will focus on plans for economic growth, as opposed to spending cuts. A review of employment law is expected to be requested by the prime minister, which should see red tape for smaller firms reduced.
© Crimson Business Ltd. 2011