Saturday 17 Mar 2012 @ 11:10
WiredGov Newswire (news from other organisations)
WiredGov Newswire (news from other organisations)
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Compensated no-fault dismissals will create perverse disincentive to growth, warns CIPD
Government plans to enable micro firms to dismiss employees without good reason risks creating a perverse barrier to economic growth by discouraging small businesses from hiring more workers.
This is the view of the Chartered Institute of Personnel and Development (CIPD) in response to a recent call for evidence by the Department for Business, Innovation and Skills on proposals to introduce compensated no fault dismissals for firms with fewer than 10 employees.
Under a system of compensated no-fault dismissals, businesses with fewer than ten employees (known as micro businesses) would be able to dismiss a worker, where no fault had been identified on the part of the employee, with the payment of a set amount of compensation.