Are calls to scrap unfair dismissal fair?
By Gail Escolme, 26 October 2011 –
Reaction to a report commissioned by the Government in which it is suggested that unfair dismissal should be scrapped will certainly divide opinion. The unions are, unsurprisingly, furious, whereas employers who have felt trapped within the huge amount of legislation regarding the employment relationship are likely to welcome such a move.
However, before hysteria sets in, let’s look at what we have currently. Employers can, until April next year, terminate the employment of any employee, up to a year’s service, (as long as it is not for a discriminatory reason, or for an automatically unfair reason, in which case no length of service is required to bring a claim) without fear of facing an unfair dismissal claim. From April 2012 employers will have 2 years in which to terminate employment without fear of unfair dismissal claims being brought.
Whilst it is true that there is a significant amount of employment law legislation, if the employer at least familiarises itself with disciplinary and grievance procedures, and monitors the conduct and capability of its employees sufficiently to spot an employee that is unwilling or unable to do the job (for non-discriminatory reasons of course) then the employer can terminate the employment without fear of reprisals before the current one year service requirement (2 years from April) for the employee to be able to claim unfair dismissal.
However in many cases the employer does not monitor employees sufficiently at the beginning of their employment. It is often obvious very quickly whether an employee “fits” within the business and if they do not, then steps should be taken quickly to terminate their employment, ideally after they have been given the opportunity to improve but still before the service requirement is reached. If an employee suddenly becomes less efficient after some years of service, there is usually a reason for it, which if investigated can usually be overcome. Otherwise disciplinary procedures can be implemented to give warnings and ultimately dismiss if warranted. Ultimately good management goes a long way to having a good workforce.
I do agree that the employment legislation burden should be lessened for small employers who are genuinely finding it difficult to deal with it, however I am concerned that the baby may be thrown out with the bath water. Interesting times ahead I think!