View more on these topics

No-fault dismissal plans expected to be shelved

Controversial plans for no fault dismissals are expected to be shelved after a lack of support from business leaders and resistance from Business Secretary Vince Cable, according to reports.

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. It closes on June 8th.

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.

According to the Guardian, the consultation reveals a lack of support for the move among business leaders. Cable warns the proposal would leave a “dead hand of fear” hanging over employees.

While the prime minister has yet to give a public indication the move could be shelved, Government sources indicate that David Cameron is expected to allow the proposal to be dropped.

A source close to Cable says: “The last thing employees want is the dead hand of fear hanging over them losing their jobs.”

The Government has so far refused to release the Beecroft report which is though to outline a radical programme of Labour market deregulation. However, it was reported over the weekend that the Government will publish it this week after months of pressure to do so.

A leaked version of the report, published by the Daily Telegraph contains proposals to delay autoenrolment until the economy recovers and to exempt businesses with less than five staff from the initiative. It argues that 45 per cent of the cost of the Government’s employer compliance regime would come from around 800,000 micro-employers.

In February, the Government announced new staging dates for small companies after their implementation of auto-enrolment was delayed.


Swip international equity director Steven Maxwell dies

Scottish Widows investment director, international equities Steven Maxwell has passed away. Maxwell stepped down from fund management in the final quarter of 2011 and passed away on April 8. Maxwell managed the £49m Swip European income fund and the £26m TU European fund. Maxwell joined Swip in 2004 from Standard Life Investments where he was […]

Moody’s downgrades Santander UK and 16 Spanish banks

Moody’s has downgraded Santander UK and 16 Spanish banks, including Santander’s parent company Banco Santander, due to concerns about the banks’ credit-worthiness and the Spanish government’s ability to provide support.


Martin Bamford: Emerge fitter after RDR diet

I have been through something of a personal transformation since the start of this year. My New Year’s resolutions usually fizzle out by the end of January following a short burst of dedication and devotion. For some reason, this year was different. I did want to be a little fitter but I have tried and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm