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Unfair dismissal rule changes 'will save businesses money'



Changes to the rules on unfair dismissals could save UK businesses £6 million a year, the government has said.

The claim was made by the Department for Business, Innovation and Skills after it confirmed that sacked workers will only be entitled to seek unfair dismissal compensation claim advice if they are in a job for at least two years.

Companies have repeatedly warned that the law on unfair dismissals has been a barrier to growth, explained business secretary Vince Cable.

"We have one of the most flexible labour markets in the world but there is more we can do to give British business the confidence it needs to create more jobs and support the wider economy to grow," he said.

It comes as a survey of businesses carried out by the British Chambers of Commerce shows that employment law remains a major barrier to firms taking on more staff.

Rules around dismissal, health and safety and sickness absence were highlighted by the companies as key areas of concern.

Posted by Alex McLeanADNFCR-1678-ID-800748906-ADNFCR
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