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Institute of Directors (IoD) Chairman sounds off on employment law

BritishmuseumburgheadbullEmployment law "is a pile of crap."

This was recently appointed Institute of Directors (IoD) Chairman Ian Dormer's first impression of UK employment law when he started work at his father's business Rosh Engineering back in 1989.

Dormer made these remarks in an interview with the Daily Telegraph, in which he also says that venture capitalist Adrian Beecroft's controversial proposals for radical employment law reform to boost economic growth were "halfway there."

The Telegraph says that "bitter experience means he talks as tough on employment red tape as anyone at any of the UK's business groups."

Dormer: "God, [employment law] is a pile of crap"
In the Telegraph interview, Dormer describes his first encounter with employment law, from 1989:
When I joined Rosh, I was completely unqualified to run a business and was learning on the hoof. I remember thinking, God, [employment law] is a pile of crap. You go to a meeting and everyone has the same issues, you realise you're not alone. I found it a huge support.
"For Dormer, tackling employment law is at the top of the list," the Telegraph says.

Dormer: Beecroft was "halfway there"
Dormer also shares his views on Beecroft.

He says that Beecroft's proposals were "halfway there."

Dormer goes on to explain this view:
The less the risks are for the employer at the outset, the greater risks you'll take in hiring. I'm not suggesting that I don't want any employment protection, but don't legislate for the 1% to damage the 99% of responsible bosses. Anyone who's out and out bad will be bad even if there is a law.
He also sets his sights on employment lawyers:
When lawyers are making a lot of money from government legislation, there's something wrong.

Head over to the Telegraph website to read the interview with Dormer in full.

UPDATE 1 (Wednesday 25 July 2012): 'Lawyers are like vampires...'
"Lawyers are like vampires; they can only come in if you invite them."

So says Darren Newman, in his comment on this post. I strongly recommend that you check out what Darren has to say in full, as he presents a very convincing argument that Dormer's views on employment law (at least as conveyed via the Telegraph interview) would appear to be based more on anecdote than on evidence.

Mervyn Dinnen, meanwhile, makes a very good observation via Twitter: "Were these guys moaning about employment law during the boom years?? Did it hold profits back in 05/06?"
MervTweet25July2012.JPG
UPDATE 2 (Wednesday 25 July 2012): 'Clients are like zombies...'
The parallel between employment law and the undead are explored further by Sean Jones, specialist Employment Law Silk at 11KBW Chambers - but this time it's the clients that Sean has in mind. Sean comments, via Twitter: "clients are like zombies: they only want us for our brainssss."
SeanJonesZombieTweet.JPG
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Michael Carty | |

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Comments (3)

Well obviously its no surprise that the new head of the IoD has a bit of a downer on employment law.

This time however his objection seems to be based on the earnings of his brother in law who is an employment lawyer and 'earns a lot of money'. I'd love to be a fly on the wall at the family's next get-together.

He also has an anecdote about an employee who claimed unfair dismissal and then didn't turn up to the hearing. It seems it cost him £300 in legal fees - which seems quite modest to me.

Employment lawyers do not descend on innocent employers and employees and force them to engage in protracted legal battles rather than sort out their differences in a grown up way. Lawyers are like vampires; they can only come in if you invite them. Employers hire lawyers because they want to win their case. You have a better chance of winning your case if you are well represented. Arguing that employment law 'is good for lawyers' is a just a lazy way of whinging about it without actually making a coherent argument.

Rant over. As you were.

Michael Carty Author Profile Page:

"Lawyers are like vampires; they can only come in if you invite them."

Sir, I think you may just have weighed in with the comment of the year there!

And you are 100% right to highlight the anecdotal nature of Dormer's issues with employment law (at least as they appear to be expressed via the Telegraph interview).

As with the Beecroft report, what the Telegraph reports Dormer as saying is long on anecdote and very short on evidence. I think this qualifies for what UK blogger Rick describes as the politics of "I met a man."

If lawyers aren't making money out of government legislation, the legislation was probably unnecessary.

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