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A report into employment laws commissioned by the prime minister has recommended scrapping the right for workers to claim wages.

Currently, workers are able to claim compensation for work they perform, a process known as ‘being paid’ or ‘getting a salary’.

The report was written by Adrian Beecroft, a venture capitalist and Conservative Party donor.

The chancellor, George Osborne, recently announced new measures aimed at restricting the number of wage claims.

He announced that, from April 2011,  for a claim for wages or a salary to be paid, the individual must have been in the job for at least two years.

Staff ‘Costing Money’

However, Mr Beecroft’s report goes much further.

It calls for an end to wage paying – a system the report’s author thinks prevents employers from expanding as they are fearful they won’t have enough money left to spend on themselves because a lot of it is paid to their employees instead.

A final draft of the report, dated Oct 12 2011, says the first major issue for British enterprise is “the terrible impact of wages on the efficiency and hence competitiveness of our businesses, and on the effectiveness and cost of our public services.”

Labour’s claims that abolishing wages would adversely affect consumer confidence because most people wouldn’t have any money to spend was dismissed by a Downing Street spokesman as ‘scaremongering’:

By introducing slavery, the owners of firms will have more money to spend on themselves which will more than cancel out the lack of spending power of their employees.

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