Watering down employment law rights is a step in the wrong direction for the government and companies alike.
That is the opinion of Mike Emmott, employee relations adviser at the Chartered Institute of Personnel and Development, who has called on chancellor George Osborne to reconsider his owner-employee proposals.
During his speech at the Conservative Party's autumn conference yesterday (October 8th), Mr Osborne outlined plans for a "radical change" to Britain's employment legislation.
Under the terms of this reform, companies would be permitted to hand over shares in their business to members of staff who, in turn, would then "replace their old rights of unfair dismissal and redundancy with new rights of ownership".
As a reward for this swap, the administration will charge people no capital gains tax on any profit they make on their holdings.
However, Mr Emmott has questioned the wisdom of this idea, saying it is unlikely to benefit either the individual or their employer.
"Employees have little to gain by substituting their fundamental rights for uncertain financial gain and employers have little to gain by creating a two-tier labour market," he noted.
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Posted by Chris Stevenson