Back to Legal Industry News

Govt unveils new employment law proposal

Govt unveils new employment law proposal

Rules for small businesses relating to redundancy could be altered under a new employment law shake-up, it has emerged today (March 15th).

Business secretary Vince Cable has announced the government is to launch a consultation to establish whether or not dismissal regulations are too complicated for such firms in the current economic climate.

During a speech delivered at the annual conference of the British Chambers of Commerce (BCC), the minister - who is also MP for Twickenham - unveiled the administration's "no-fault dismissal" policy.

Should it come into law, this would allow companies with fewer than ten employees to make a worker redundant at any time as long as a set amount of compensation is awarded.

Mr Cable said the government is now welcoming feedback from businesses about this idea, but general secretary of the Trades Union Congress criticised the plan.

"Giving bosses the right to act unfairly may go down well on the backbenches, but it will horrify employees," he stated.

Contact our employment solicitors on 0800 916 9060 or email if you would like advice on any employment matter.

Posted by Francesca Witney