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          In the debate about employment tribunals both Nick Clegg and Vince Cable have acknowledged the need for frank discussions between staff and employers.

          Nick Clegg told a group of small business leaders that it was important for employers to be able to have such discussions with underperforming staff without fear it would be used against them in tribunals.

          By treating employees as human beings and not potential litigants problems could be sorted out through simple face-to-face conversation without the need for employment tribunals.

          New laws in relation to employment would entrench the ability to have these protected conversations under proposals announced by Vince Cable.

          A report commissioned by the prime minister and carried out by venture capitalist Adrian Beecroft says unfair dismissal rules prevent growth.

          Mr Clegg said: “Employers tell us they’re afraid to have frank discussions with staff … for fear of those exchanges being used against them unfairly, should a dispute end up at tribunal.”

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