PRESS ASSOCIATION -- Workers with less than two years' service will be prevented from taking their employers to a tribunal for unfair dismissal under Government plans to boost the economy.
The proposals, to be unveiled by Chancellor George Osborne at the Conservative Party conference, will see the qualification period increased from one year to two from next April.
It is likely to open a new faultline between the coalition and trade unions, but Mr Osborne told The Sun: "We talk a lot about trade union rights - but what about the right of the unemployed person to be given a shot at a job and a career?
"What about the rights of people currently sitting at home with nothing to do, desperate to get work, but the business can't afford to employ them because they fear they are going to be taken to the tribunal?"
A total of 236,000 employment tribunal claims were made last year, with an average award of £8,900 for successful claimants, and the average cost of defending a claim at £4,000, according to Treasury officials.
It is claimed the change in law will benefit business by around £6 million a year in reduced legal fees and payouts, while employees are expected to lose around £1 million in unfair dismissal awards. Under the proposals, employees will still retain "day one" rights, such as the right not to be discriminated against.
Writing in the Daily Mail, Prime Minister David Cameron said: "Deficit reduction is an essential step for economic growth - but it must be accompanied by a plan for jobs too."
Claiming it is businesses, not governments, which create jobs, he added: "And the role for government is not to single out good and bad industries, it's to make it easy as possible for all industries, all business, to grow, invest, take people on. And whether it's cutting corporation tax, investing in superfast broadband or getting to grips with employment regulations, that's exactly what we're doing."
Meanwhile, the possibility of tax cuts before the next general election depends on "how things develop" between now and 2015, Mr Osborne said.
Ahead of this weekend's conference, the Chancellor offered a highly cautious verdict on the prospect of tax bills coming down. He indicated that his primary focus is for now on promoting private sector growth and that he would only want to introduce tax cuts that would be permanent - "not just for Christmas".