Eroding employment rights won't boost economic growth, warns TUC

date: 14 September 2012

embargo: For immediate release

Government plans to reduce payouts for unfair dismissals will do nothing to boost economic growth and make it easier for bad employers to mistreat their staff, the TUC warned today (Friday).

The TUC said that while it welcomed the news that Business Secretary Vince Cable had rejected calls for employers to be able to fire employees at will, the proposals risked deterring genuine victims from pursuing cases.

Under the government's proposals the cap on payouts for unfair dismissal will fall from £72,300 to a year's pay.

Commenting on the proposals, TUC General Secretary Brendan Barber said: 'We are pleased that Adrian Beecroft's proposal to allow employers to fire employees at whim has been ignored. This would have would have set workers' rights back decades and created huge insecurity in workplaces throughout the country.

'However, reducing payouts for unfair dismissals will let bad employers off lightly and deter victims from pursuing genuine cases. This will feel like another slap in the face following the government's decision to bring in fees for employment tribunals.

'For all the government's talk that helping businesses to sack poor performing workers will make companies more productive, this is little more than a smokescreen to erode hard won rights. Making it easier for bad employers to get away with misconduct is not the way to kick start our economy and will not create a single new job.'

NOTES TO EDITORS:

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Contacts:

Media enquiries:
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Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk