No-fault dismissals ‘killed off’

A proposal to make it easier for companies to sack workers through ‘no-fault dismissals’ appears to have been dropped from the Enterprise and Regulatory Reform Bill.

The controversial proposal was recommended in a government-commissioned report by Adrian Beecroft, but attracted much criticism. A clause in the Enterprise and Regulatory Reform Bill on voluntary settlement agreements has today been inserted in the place of that on compensated no-fault dismissals.

The Government has yet to confirm that this means the proposal has been killed off, the media has reported that it lacked business support with only 38% of the 135 employers who responded to a consultation and only two of eight leading business groups saying they were in favour. The Chartered Institute of Personnel and Development was a key critic.

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