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Government Consults on Simplifying the Dismissal Rules

19 April 2012

The Government has published a ‘Call for Evidence’ seeking the views of business organisations, employees and all other interested parties on the way in which the dismissal procedures currently operate. This includes views on awareness, understanding and the use of the ACAS Code of Practice on Discipline and Grievance.

The Government is particularly keen to encourage small businesses to take on more staff and sees overburdensome employment regulations as having a deterrent effect. To this end, it has put forward for consultation a proposal to introduce compensated no-fault dismissal for businesses with fewer than 10 employees. Employers would be able to let a member of staff go where no fault had been identified on their part, with the payment of a set amount in compensation.

The Call for Evidence can be found at http://www.bis.gov.uk/assets/biscore/employment-matters/docs/d/12-626-dismissal-for-micro-businesses-call. The closing date is 8 June 2012.

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