Government plans to reduce payouts for unfair
dismissals will do nothing to boost economic growth and make it easier for bad
employers to mistreat their staff, unions have warned. Under the changes announced
this week by business secretary Vince Cable the cap on payouts for unfair
dismissal will fall from £72,300 to a year's pay. TUC
general secretary Brendan Barber responded that 'reducing payouts for unfair
dismissals will let bad employers off lightly and deter victims from pursuing
genuine cases. This will feel like another slap in the face following the
government's decision to bring in fees for employment tribunals.' STUC general
secretary Grahame Smith said: 'These moves by Vince Cable, the business
secretary, would tend to suggest he has abandoned his principles and previously
held views on there being no need for further deregulation of our labour
market.' He added: 'His department is presiding over the most savage cuts in
employment protection we have witnessed since the previous Conservative
government while, at the same time, the Department of Work and Pensions is
slashing health and safety regulation and attacking the effectiveness of HSE
[the Health and Safety Executive] to enforce the legislation and protect
workers.' The government changed the law earlier this year to increase to two
years the service requirement to claim unfair dismissal. In April 2013 the
government will introduce charges for access to tribunals, which unions believe
will further discourage safety whistleblowers. Workers claiming victimisation
after raising safety concerns fall into the top £1,200 fee bracket for taking
an unfair dismissal claim.
