Scrapping unfair dismissal will do nothing to boost the economy, says TUC

date: 15 March 2012

embargo: For immediate release

Responding to a government call for evidence published today (Thursday) which says that unfair dismissal laws are preventing small companies from taking on staff and could be replaced by 'no fault compensated dismissal', TUC General Secretary Brendan Barber said:

'Scrapping protection against unfair dismissal, even for people who have given years of loyal service, will do absolutely nothing to boost the economy. If people are constantly in fear of losing their jobs it will lead to even less consumer spending.

'Losing your job is one of the worst things that can happen to anyone, especially when unemployment is so high. Employees should only be dismissed for fair reasons, as set out in current laws. The clue is in the name - unfair dismissal.

'Employers already have powers to make fair dismissals for misconduct or poor performance. Giving bosses the right to act unfairly may go down well on the backbenches, but it will horrify employees.

'But while this proposal does nothing for growth, it does show the kind of economy those close to the Prime Minister want to create - one in which nasty bosses are given full license to undermine those trying to maintain decent standards.

'We are relieved that the government is calling for evidence rather than simply announcing a change in the law. The TUC will provide evidence that there is no causal link between employment regulation and recruitment, and will demonstrate the real injustices that will result from employers being allowed to sack people on a whim and pay them a derisory arbitrary sum in compensation.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
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Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk