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MPs call for no-fault dismissal to be scrapped

Over 60 MPs have signed a motion calling on the Government to drop controversial plans to introduce no-fault dismissals for small firms.

In November, the Government launched a consultation on whether employers with fewer than 10 staff should be able to dismiss staff without an explanation as part of a wider package of measures aimed and making it easier for firms to hire and fire workers.

No-fault dismissals were first suggested in a report by Adrian Beecroft, a venture capitalist, commissioned by Steve Hilton’, David Cameron’s policy adviser who recently left for a teaching sabbatical in California.

The motion, signed by 61 MPs says the move would create “huge insecurity” for millions of employees.

It says: There actually noting to suggest watering down those rights would create any more jobs and indeed the job insecurity it would create would actually be bad for the economy and businesses.

“[We consider] it imperative that the Government rejects this unfair and unnecessary proposal which would undermine the work security of millions and could lead to harm industrial relations and productive workplaces. “

Last month, it was reported the move could be shelved after sources close to Business Secretary Vince Cable said: “The last thing employees want is the dead hand of fear hanging over them losing their jobs.”

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