The Government’s decision to put Adrian Beecroft’s controversial proposals for compensated no-fault dismissal on the policy bonfire were warmly by the CIPD, following Vince Cable’s announcement of a package of employment law reforms. However, the CIPD is cautious about the measures designed “to make it easier for businesses to dismiss employees”, i.e. reducing the cap on unfair dismissal compensation and facilitating settlements agreements with a view to terminating employment. The CIPD warns that it is crucial that these are not used in such a way as to undermine mutual trust and confidence in the workplace between employers and employees. The CIPD will be responding to the Government consultation to ensure that settlement agreements can’t be used as a first port of call by employers simply because an employee’s ‘face doesn’t fit’.
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