Employment Law

Lord Teverson Excerpts

Monday 21st May 2012 Lords Chamber

[Lord De Mauley]

My Lords, in response to the first point made by the noble Lord, Lord Martin, about the importance of stability for employers, I definitely agree with him. The question we are addressing is whether the scales have tipped too far against growth. That is what must matter to all of us, surely. With regard to the noble Lord’s comments on apprenticeships, I share his enthusiasm for them and agree with him on that point.

[Lord Teverson]

My Lords, I believe that there is a problem in how the current system works in that SMEs—I am involved with some—do not have their own HR staff. They go to professionals for help and the professional advice is inevitably always very conservative. Even when there is a good case that someone should be fired, which should happen only when they have been given the chance of training and have gone through the right appraisals, advice is often given to pay off employees rather than let the matter go to an industrial tribunal. The result is a psychology in this sector that that has to happen, when in fact it should go through to the end of the process and be resolved properly and equitably. It results in vexatious claims that wrongly scare SMEs when they do not fulfil the rights that they have when an employee should be dismissed. Will the Government consider that area of professional advisory conservatism to avoid the professionals being told, post event, that they were wrong?

[Lord De Mauley]

I thank my noble friend who is absolutely spot on. A number of measures will be coming forward that will contribute to that. One of those, which is perhaps not so relevant for smaller businesses, but which is indicative of what we are trying to do, is to involve ACAS at an earlier stage.