By Marcus Leach

A leaked government report says that unproductive workers should lose their right to claim unfair dismissal.

According to the report, which was commissioned by David Cameron, the change in unfair dismissal law would boost economic growth due to more capable people being employed.

The report, which was printed in The Daily Telegraph said that it was to easy, under current laws, for staff to "coast along", with some almost impossible to sack.

In response to the leaked report Downing Street said changes to unfair dismissal rules are "unlikely".

The Daily Telegraph reports that:

"The rules both make it difficult to prove that someone deserves to be dismissed, and demand a process for doing so which is so lengthy and complex that it is hard to implement.

"This makes it too easy for employees to claim they have been unfairly treated and to gain significant compensation."

As it stands under current law workers who feel they have been unfairly dismissed can make a claim after 12 months in a job.

“Leaked reports by venture capitalist Adrian Beecroft acting on behalf of the Coalition government, which look at the reform of employment law, has so far caused intense debate," Amy Paxton, Senior Employment Consultant at Croner, part of Wolters Kluwer, said.

"However, what we would remind employers is that it is only a draft report and until anything is finalised, there are no indications that they should not be duly concerned with the proposals.

“In our experience we would be very surprised if these proposals are implemented as they would not be beneficial to either employers or employees.

“Recent announcements on proposed changes to legislation may make inroads into changing the ways that employees can be dismissed, including the extension of the unfair dismissal qualifying period which comes into effect in April 2012.

“We should also not forget the bigger picture here, there are other costs associated with firing and hiring such as recruitment and training costs and therefore the suggestions contained within the leaked report may make little financial difference to the employer.

“Employers with poor performing staff should look at their performance management policies and procedures. Often training and development can solve issues in a low cost and effective way, thereby forgoing the need to dismiss.”

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