Leading article: Eroding employee rights will not fix Britain's problems

Wednesday 23 November 2011 01:00 GMT
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With the Prime Minister tempted by the idea of watering down employee rights, it is a relief that he has Liberal Democrat colleagues in government to oppose him.

Ahead of next week's set-piece Autumn Statement, David Cameron is casting around for eye-catching policies that will both boost economic growth and be seen to do so. In desperation, he is erring towards venture capitalist Adrian Beecroft's recommendation that "unfair dismissal" be replaced by "compensated no-fault dismissal" with no recourse to a tribunal.

Such a move might mollify the right-wing business lobby for whom employment rights have totemic status. But there is little evidence it would result in any meaningful economic improvement. Worse still, it would be unacceptably open to abuse – an egregiously retrograde step for Britain's labour market. It can only be hoped the Liberal Democrats win the argument.

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