Dealing with dismissal and compensated no fault dismissal for micro business

01 June 2012

In June, CMI responded to a call for evidence by the Department for Business, Innovation and Skills on the current dismissal process, including the concept of 'compensated no fault dismissal' for micro businesses. This submission summarises our research into managers' views on regulations affecting small businesses and demonstrates that there is strong support for replacing the current fair dismissal rules to make it easier to dismiss staff, particularly among smaller businesses.

CMI welcomes efforts to reduce the legislative burden upon managers. However, in our view more must be done, particularly for small businesses, to ensure managers do not rely solely on the last resort of dismissal, but focus their efforts on better recruitment, training and performance management.

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