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The right to hire and fire
Page 29
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The Industrial Relations Act has put paid to the irresponsibly abrupt dismissal of employees who have a reasonable term of service, and few people would quarrel with the humanity of that. But some employers are becoming concerned about their liability for compensation in cases which are far from clearcut, and in which their responsibilities as employers might seem to be given little weight. Although the road transport industry has not yet suffered the heavy penalties which have been exacted in some cases — as much as £4,000 — the industrial tribunals are hearing about 200 cases a week, so road haulage may expect to feel the full weight of this legislation before long.
Providing protection for employees who lose their jobs is a praiseworthy aim, but we think the effect on employers has not been sufficiently appreciated. An employer may sack an employee for what he regards as incompetence or misconduct but even so he may be called upon to prove to a learned three-man tribunal that his action was just — which can be more difficult than it appears. Employers are now saying that such compensation is really a fine, and certainly it can be seen as a deterrent against dismissal even where this may be justified.
A mammoth collection of tribunal decisions has already been built up on this issue, but few cases are appealed to the NIRC and few of these appeals attract public notice. It takes a case like the recent one in which compensation was awarded a driver dismissed for dangerous driving, to focus attention on what is going on.
We understand that the Government is now thinking of extending the dismissal compensation rights to employees with less than two years' service. Employer associations are likely to join forces to resist the reduction of this already low period, which could lessen the chance of stable working relationships being built up, and increase the likelihood of trivial claims.