Osborne opens consultation on no-fault dismissals for microbusinesses

The Chancellor of the Exchequer George Osborne has announced a consultation on whether to grant micro-businesses the right to no fault dismissals.

The Chancellor of the Exchequer George Osborne has announced a consultation on whether to grant micro-businesses the right to no fault dismissals.

Speaking at the EEF Manufactors’ Dinner earlier this week, Osborne said he wanted to reduce "red tape" for businesses.

He said: "What I’ve seen after nearly two years in the job is that it’s not just about this one piece of regulation or that. It’s about a culture in our politics, public life and media in which people assume you can regulate every problem away; where everyone insists government must step in – “something must be done”. It would be so easy to give into the relentless stream of pressure groups, single issue campaigns and front pages – but we’ve got to as a country be able to say “no”. "

The Government has already introduced what Osborne referred to as a “one in one out” rule on all new business regulation in Whitehall and businesses with fewer than ten employees have got a moratorium on new domestic regulation for three years.

It has also doubled the period before employees can claim unfair dismissal to two years and has introduced fees for employment tribunal claims.

He told the EEF: "Of course, employees have rights and should be protected. But what about your right to start a business and not be sued out of existence?"

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