David Cameron has proposed plans to slash employee security by easing the process of sacking staff within the first two years of employment.
Current legislation allows employees to raise an unfair dismissal claim against employers after one year; the Coalition intends on doubling the time limit, meaning firms have a two year window in which to assess the employee’s capability.
By removing the threat of employers being taken to an employment tribunal for unfair dismissal, Cameron hopes that firms will have the opportunity to be more frugal with their permanent choices.
The Coalition propose that this ‘employers’ charter’ will create thousands more job opportunities, believing that relaxing the laws on employment will encourage companies to take on more staff.
In a bid to steer employees away from seeking ‘vexatious claims’ and taking companies to an employment tribunal will now incur a charge for accusing employees.
In a further attempt to slash employee rights, the Coalition is expected to reduce the length of time that statutory sick pay is distributed, currently the wage is at least £79.15 for a maximum of 28 weeks.
The plans are part of Cameron’s jobs summit which will take place at Downing Street today. 19 of Britain’s biggest employers – including Tesco, McDonalds, Microsoft and Shell – will promise to take on thousands of new employees and particularly offer more positions for school leavers.
The Prime Minister said “we can only get our economy back on track by creating a climate in which the private sector can grow and develop, creating jobs and opportunities for people across the country.
“This year the Government is determined to help deliver many thousands of new jobs and I’m delighted that the companies joining me today are part of that.
“It’s time we looked forward to a positive, strong and confident Britain.”
Labour leader Ed Miliband disagrees with the Coalition proposals, seeing a risk of alienating young people, he said “there will be a looming gap in the help given to unemployed young people.
“The decision to betray young people is not just unfair, it is the wrong economic judgement for this country.”