David Cameron has announced that, to boost employment, he will make it easier for employees to be sacked from their jobs. This will be done by barring workers with less than two years’ service from bringing a case to an Employment Tribunal. At present employees with a minimum of one year’s service may do this.
Cameron’s main argument is that this will help to create jobs. In the real world, it’s doubtful that this will happen. If Employee A is sacked and replaced with Employee B, Employee A will then become unemployed – making a net employment gain of, er, zero.
Our erstwhile PM has also failed to realise that his latest wheeze could actually cost employers MORE. Once Employee A has been sacked, the business will then have to pay to advertise for a replacement. Then there’s the time and money involved in interviewing & selecting the right applicant. So when Employee B gets the job, the company will then have to spend more money on training and induction. Smaller companies (who this policy is targeted at) would struggle to absorb the costs of this.
Once again, Cameron shows just how ignorant of reality he really is.