Government plans to introduce no-fault dismissal are unpopular and unhelpful, the EEF has warned.
Westminster should refocus on employment reform that will deliver genuine benefits, the EEF told a consultation on compensated no-fault dismissal plans.
The proposals, which will allow firms to dismiss unproductive employees more easily, could scupper strong relations with workforces within manufacturing, the EEF stressed.
EEF chief executive Terry Scuoler said: "We've found little support from industry for introducing no-fault dismissal, its benefits look pretty limited and we've seen no evidence that it would increase recruitment.
He added: "The government now needs to take a hard look at whether the claims for its benefits are real and at the risk of damaging employment relations."
The EEF urged efforts to focus instead on much needed employment law reforms including:
1. Accelerating plans to reduce the 90 day consultation period for collective redundancy 30 days
2. Delivering on commitments to reduce the number and length of Employment Tribunals by streamlining the process.
3. Simplifying TUPE regulations to allow employers to harmonise terms and conditions of employees a year after the transfer of the business has taken place
4. Helping employers to manage performance by introducing protected conversations, which give employers a safe space to discuss performance issues with employees without triggering legal action.
5. Clarifying plans for shared parental leave
Scuoler added: "The government has many good ideas on collective redundancy, employment tribunals, TUPE and compromise agreements and it now needs to get on with implementing them before moving any further on no-fault dismissal."