The Law Society has warned that making it easier for small
businesses to dismiss people will not help them grow. The warning
comes after proposals in the Beecroft report emerged, giving small
businesses greater scope to dismiss employees.
Under the proposals, small businesses will be able to dismiss a
worker even where there has been no misconduct or they have not
performed to the required standard.
The Government says that small businesses are not expanding
because of fear of being caught out by employment laws, in
particular, unfair dismissal. It wants to exempt those businesses
with fewer than ten employees from these laws.
'Making it easier for small businesses to dismiss people will
not help them to flourish and expand,' says Chair of the Law
Society Employment Law Committee Angharad Harris.
'There is a clear and well understood framework for employers,
small and large.
Creating a separate system for businesses with fewer than 10 people
will create a 'two-tier' system which will be confusing and
unhelpful.'
The Law Society warns there is also the risk that 'compensated
no fault dismissal' will encourage poor management practices.
Employers might not realise that 'no fault dismissal' doesn't allow
them to dismiss a worker because they are pregnant, or because they
have a disability.
Angharad Harris added: 'Not only do these changes remove
important protections for employees, they also make small
businesses vulnerable to other employment tribunal claims.;
'What small businesses and first time employers need is support
and advice to understand that employment law is largely a matter of
good practice.'
Ends
Notes to editors:
Unfair dismissal laws regulate the way employers can lawfully
terminate a person's employment. These laws include allowing
employers to terminate someone for misconduct, not performing to
the required standard or because there is no longer enough work.
The Government is consulting on compensated no-fault dismissal
for micro-businesses with fewer than ten employees. Under such a
system, a business would be able to dismiss a worker where no fault
had been identified on the part of the employee, with the payment
of a set amount of compensation. The Law Society is submitting a
consultation response.
When in doubt, the Law Society advises employers to get in touch
with their local solicitor.