Examination of Witnesses

Part of Enterprise and Regulatory Reform Bill – in a Public Bill Committee am 10:40 am ar 19 Mehefin 2012.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Alexander Ehmann: The Institute of Directors would have preferred to see the Government pursue compensated no-fault dismissal, because evidence among our membership base showed that more than a third of our members would have been minded to employ extra staff on the basis of such a change, whereas the settlement agreement proposal generates only about 25% greater willingness to employ. On those grounds, the distinction between the two is pretty clear.

As Tim said, compensated no-fault dismissal is a unilateral decision on the part of the employer to award, effectively, a minimum sum for the termination of a contract. As we understand it, the settlement agreement proposal enables both parties to discuss whether they can reach a form of compensation that they are content with, which stops them from having to go through a tribunal process. It is important to recognise that tribunals very rarely get someone their job back, so all we are doing is front-loading a form of compensation that ensures that both parties can move on with both their business and their personal lives in a reasonable way.