No case for law changes

Good Friday turned out to be a bad day for around 2.7 million workers across the UK. New changes to unfair dismissal rules means they now face an increased risk of losing their jobs due the government's decision to increase the qualifying period for protection from unfair dismissal from one year to two years. Giving employers the right to sack workers for any reason, without recourse (except in discrimination cases) only makes workers face more job insecurity at a time when workers need more confidence.

The government argues that watering down employment rights will help to boost recruitment and help companies grow, but there is no credible evidence to support this. While the qualifying period for unfair dismissal rights in the UK has fluctuated over time, since 1999 when the qualifying period was last reduced from two years to 12 months, more than 1,750,000 extra jobs have been created in the UK.

This change in the law is also not a top priority for business. The Small Business Barometer commissioned by the Department for Business, published in October 2011, asked 500 small and medium-sized businesses about their main obstacles to success. The biggest problem (cited by 45 per cent) was the state of the economy, while obtaining finance from the banks was the next biggest issue (12 per cent). After this came taxation, cash flow and competition. Just six per cent of small businesses listed regulation, or 'red tape', as their main barrier to growth.

The changes also fall disproportionately. Women working part-time and employees from Black Minority Ethnic communities are particularly at risk, as 1.4 million part-time female employees have been with their current employer for less than two years, and only around a third of all BME employees have had the same employer for less than two years - compared with a quarter of white employees. In addition, the increased qualifying period will have a detrimental impact on younger workers - already facing serious difficulties because of record levels of youth unemployment. Nearly two in three (61 per cent) of employees aged 24 and under have less than two years service with their current employer.

This action merely adds 'decent standards at work' to the long list of government excuses for their failure on the economy; we've had the weather (hot and cold), the Royal Wedding, the Euro-zone crisis and a one-day public sector strike - now the Chancellor claims the employment is not growing because it is not easy enough for employers to sack workers; a totally bogus claim by any measure.

The reality is these changes are prompted by an attempt to appease increasingly assertive Tory back-benchers rather than any real sense there will be an economic benefit. The danger for working people is what the Chancellor does next when this measure fails too, as it is bound to do? Watch this space for news of more bad news to come.

Kevin Rowan

Regional Secretary

Northern TUC