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BCC backs no-fault dismissal route

The British Chambers of Commerce (BCC) has thrown its weight behind proposals that could mean a sharp drop in the number of people entitled to seek unfair dismissal compensation claim advice.
Setting out its five-point plan for job creation that it hopes the government will adopt, the business lobby group backed the idea of imposing a new no-fault dismissal route for all companies with fewer than 250 employees.
According to the BCC, over 70 per cent of firms see dismissal rules as burdensome to their business.
The proposals for a no-fault dismissal route were originally suggested by Adrian Beecroft in a study commissioned by the prime minister.
He suggested that many workers "coast along" and underperform because they know their employer is reluctant to sack them.
Businesses would be able to sever a contract without fear of being taken to a tribunal, in return for a statutory level of compensation to the employee, the BCC explains.
"A new compensated dismissal route would give businesses confidence, which is good for employers, employees, and the economy," it argues.
Posted by Alex McLean
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