Consultation outcome

Dealing with dismissal and compensated no fault dismissal for micro businesses: call for evidence

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Download the full outcome

Detail of outcome

The government response analyses public responses on the no fault dismissal (NFD) proposal and the Acas code of discipline and grievance. It explains where we need to make changes.

Original consultation


Seeks evidence on current dismissal processes, including the Acas Code of Practice and 'compensated no fault dismissal' for micro businesses

This consultation ran from

Consultation description

The government is looking at any areas of current laws and regulations that can discourage responsible employers from hiring new staff.

We want to gather evidence about how the current dismissal system operates, including awareness, use and understanding of the Acas Code of Practice on Discipline and Grievance. In particular, we want to understand whether the code could be changed to make it easier to use and more accessible to smaller businesses.

We are also seeking evidence on whether to introduce a system of ‘compensated no fault dismissal’ for micro businesses (ie businesses employing fewer than 10 staff) and what the consequences could be, including the wider impact on both employer and employee confidence.

This call for evidence:

  • sets out the current legal framework for dismissal
  • summarises the existing evidence base
  • asks you to consider a number of questions and provide evidence in response

We also invite feedback on the international case studies paper about dismissal procedures of Germany, Australia and Spain, and on other relevant systems.


Published 15 March 2012