Unfair Dismissal Laws Could be Changed so it is Easier to Sack Unproductive Employees [27th Oct 2011]
A leaked report from Downing Street appears to confirm that companies may be given the right to sack workers who are unproductive. The report suggests that the current employment laws are uneconomic and should be changed. In addition it claims that people in the UK should not be able to claim for unfair dismissal to make it easier for firms to find replacements who do a better job. This would have far-reaching implications for compensation claims made by workers. The recommendations were made by Adrian Beecroft and the report was commissioned by David Cameron and the government has said that controversial measures are required to improve competitiveness for businesses. The reports states that the current laws allow employees to claim unfair dismissal due to the difficult and long-winded dismissal procedure. EU law would not prevent the unfair dismissal law being overturned as laws on sexual, racial and gender discrimination would still stand. It has however, pointed out that the change would be politically unfavourable. The Financial Services Authority is taking steps to prevent yet another miss-selling scandal related to the selling of packaged bank accounts. These types of accounts bundle a current account with insurance policies, breakdown cover, travel, ID theft and mobile phone cover. A monthly fee of between £8 and £25 per month is average for these types of accounts. The FSA is concerned that the number of these types of accounts has rocketed in recent years and that they are becoming confusing for account holders. Sheila Nicoll from the FSA has said that for some people this type of account is good value and easy, but some find that the cover they have is useless. The FSA is proposing that banks check to make sure that customers are eligible for all of the benefits, especially if their circumstances have changed. Customers also need to be told of any special requirements. The FSA wants to avoid being accused of not stepping in early enough when they see changes which should be made, as happened in the PPI miss-selling scandal. A man from Faversham has received nearly £40,000 in damages after he was injured while at work. RAC employee, Christopher Lester was carrying out routine inspections on a vehicle when he slipped on a large plastic cover which was hidden from view. As he fell he twisted his back and injured his left shoulder and elbows. The pain of the injury continued for several months, during which time he was unable to work. He had to take painkillers and had extensive treatment. He has also been told he may need surgery on his back in the future. He sought the help of a claims specialist to get compensation from his employer when it became clear his life was permanently affected. He was told by doctors that he would not be able to return to his usual job, which he had enjoyed for ten years and that the must find a more sedentary job. The compensation claim was secured by Fentons accident claims services. A class action has been started in the US and Canada against Research in Motion, the company behind the Blackberry, by those who were affected by the recent outages. They claim that the offer of $100 (USD) in applications was not suitable compensation. They accuse RIM of a breach of contract, negligence and unjust enrichment. It is possible that the suit may include up to 2.4 million people in California alone, but the numbers who have currently signed up are unclear. So far, UK Blackberry users seem to be happy with the level of compensation they are receiving, but they are likely to be watching the actions taken in the US with interest.  |
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