Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

Ministers are consulting on proposals made to make dismissal of employees easier for employers with 10 staff or less. Vince Cable, the business secretary, launched the consultation with a view to making it easier for employers to sack members of staff. However, Cable pointed out that “strong evidence” was required to make such a step justifiable.

The proposal to fire staff without proving fault, as long as compensation is paid, would be welcomed by businesses who believe the step would boost employment and reduce the costs of employment tribunals. Trade unions disagree entirely, saying that it wouldn’t be beneficial to economic growth. The business secretary considers the fear of not being able to dismiss an employee prevents businesses from recruiting staff.

Employment disputes cost an average of £4,000 each over a period of six months, with over 200,000 disputes reaching tribunal annually. Vince Cable said that this situation had to be made “simple, quicker and clearer” although job security should not be impeded. He added:

“We are seeking views on the concept of ‘compensated no-fault dismissal’ for business with fewer than 10 employees. But let me stress that no decisions have been made to go down that path.”

The chairman of the Federation of Small Businesses, John Walker cites the complexity of employment law, and the complex dismissal process can prevent businesses recruiting staff. However, Brendan Barber, general secretary of the TUC believes that the economy won’t benefit from the proposed moves. Employment law is complex, and the knowledge of low cost accountants is necessary to stay within legislation.

 

 

 

 

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

What is a Non-Established Taxable Person for VAT?

There are special VAT rules in place for online sellers who are classed as non-established taxable persons (NETPs), and use an online…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What Employers Need to Know About Statutory Maternity Pay

There’s lots to think about as an employer, but one big thing you don’t want to fly under your radar is what…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.