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No fault dismissals by the back door?

BY Richard Woods
Employment Law & HR
BG Purple

The Chancellor has outlined plans for workers to give up many key employment rights in return for shares in their employer's business. 

Under the proposals, employers would be able to issue shares valued at between £2,000 and £50,000 to staff in return for the employee waiving his or her statutory right to claim unfair dismissal and redundancy, as well as the right to ask for flexible working.  Mr Osborne's announcement has received, as would be expected, a mixed response.  One of the biggest concern for organisations representing employees is that, from April 2013, employers will be able to make the entering into this agreement a condition of employment.  

Other employment rights e.g. HR rights, will remain unaffected by these proposals. 

The announcement is yet another indication of the Government's views that unfair dismissal rights are a burden on businesses and stunting growth.  The Conservatives failed to persuade the Liberal Democrats to support the contentious Beecroft suggestion of 'no fault dismissals' but these new proposals look not too dissimilar.

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