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Government contemplates relaxing employment protection laws

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In a further effort to stimulate Britain’s flagging economy, Chancellor George Osborne is said to be considering a relaxation of employment protection legislation in next month’s Budget.

A story run in the Independent revealed that Conservative MPs are keen for Osborne to unveil a “go for growth” package in his Budget on 21 March, despite possible arguments with Liberal Democrats, which would lessen existing employment protection rights.

The news follows the controversial government-commissioned Beecroft report, which in 2011 suggested that employers should be granted permission to sack poorly-performing staff more easily through “no-fault dismissals”.

The government rejected Beecroft’s suggestions, electing instead to introduce “protected conversations” – which meant employers would be free to speak to employees about poor performance without fear of an employment tribunal. But reports suggest that Mr Osborne may make a U-turn.

Business minister Norman Lamb is said to be investigating a watered-down version of the Beecroft report, which will offer relaxed rules to employers with fewer than 10 employees.

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Written by Andrew Hodges

April 3, 2012 at 8:40 am

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