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Abolish the Tyranny of Employment Law

Comment 5th July 2010

If you wish to no longer employ somebody, you should be able to not employ them without spending zillions on a tribunal. Both parties would be better off with a simple pre agreed payment schedule for early termination of employment.  This would speed up the employment process immensely.

In my company we now provision several thousands of pounds a month to pay vexatious employment law claims. This is because before they go to tribunal as the claimant is advised by the lawyers, “even if you are 100% wrong in your claim, by us threatening to go to court, it will be in their interests if they pay us at least £2.5k – £5k, right now for us to go away and only if they are hell bent on a point of principle and want to waste many tens of thousands of pounds will they actually defend.”

So if you can’t go the simple system of “hire and fire at will,” you should have a fall back for stopping vexatious claims. I would suggest that for the latter, the legal representative and or the claimant should lodge money equal to say half of the potential claim in an escrow account at the tribunal so that the tribunal is aware it is a serious claim. As you can see, these things invariably come down to money, so just abolishing all the employment law would be better and have a pre determined tariff that needs to be paid for anyone leaving employment under whatever circumstance.

Dispensing with the whole tribunal system will speed up the recruitment of people. As someone who employs 500 people, I can vouch that you always are extremely cautious when employing somebody as you are aware that they come with many hidden liabilities nowadays and you are responsible for anything they do.

 

Why does this matter?

Dispensing with the whole tribunal system will speed up the recruitment of people. As someone who employs 500 people, I can vouch that you always are extremely cautious when employing somebody as you are aware that they come with many hidden liabilities nowadays and you are responsible for anything they do.

The smooth and simple running of business is prevented at the very start of the employment process and at the end by needless lengthy , costly tribunals that only the lawyers and not the employee or employer benefit from at all.

The tribunal system must cost a small departmental fortune to run and its abolition would save badly needed money.

Most of the rest of the world runs to the hire and fire system.

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