- 14 updates
The Confederation of British Industry (CBI) has said the Government's new employment proposals will be judged on how "quickly and effectively" future changes are implemented.
GMB trade union general secretary Paul Kenny has said the Government's new employment proposals are "unlikely to create jobs".
He said: "This is unlikely to create jobs as the overwhelming majority of employers do not think about the rights of employees when making decisions about employing more staff. Such decisions are influenced by factors like their confidence about future demand for their goods or services."
Kenny added: "Employers' confidence has been knocked sideways by this government stalling the recovery they inherited and the double dip recession.
"In fact the steps being taken here by government, and the 'noises off' about it being easier to sack people, will have a much more profound effect on workers than employers. It will increase feelings of job insecurity and reduce the confidence of workers as consumers to commit to spending."
- Business bosses are to be given stronger legal protections to fire under-performing staff.
- Settlement agreements - where employers can offer under-performing employees a pay off - could become more widely used to resolve disputes.
- If a worker accepts a deal it will become legally protected so it cannot be used later as evidence in any court case or tribunal.
- Plans for the proposals to change the limit on unfair dismissal payouts to a maximum of 12 months' salary or set it at an even lower figure.
- The Business Secretary wants to reduce the current £72,300 pay-off cap.
Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC) has said "employers will be encouraged" by Business Secretary Vince Cable's proposed law changes.
Shadow Business Secretary Chuka Umunna has told ITV News it is "extraordinary" that the Government is making things "easier" for businesses to dismiss staff.
The Labour MP said: "Our economy hasn't grown for three consecutive quarters."
He added: "It is extraordinary that the thing this government thinks it should be doing is making it easier to fire people as opposed to hire people and that is why watering down people's rights at work is really a distraction."
Vince Cable has told Daybreak that he is "firmly against a hire and fire culture" but still wants to have confidence in small businesses so that they can hire people.
Business Secretary Vince Cable has told Daybreak that the Government "wants to have confidence in businesses so that they can hire people" ahead of plans to be announced today to cut compensation workers can claim in unfair dismissals.
Mr Cable said that he is trying to get away from a "very legalistic system" and the new plan will allows small companies to feel confident that they can take someone on and not get "caught up in legal work".
Latest ITV News reports
Vince Cable will announce that "no-fault dismissal" proposals are being dropped after a lack of support among the business community.