Although I agree with the idea of making it easier to fire people, I know a lot of socialists will hate the idea, so here is a suggestion:
Let us just suspend the rules for the life of this parliament. And allow the firing of people taken on for their first twelve months of employment. After the twelve months the rules are enforced again for that employee, although if the company then takes on another, during the life of this parliament, they could be suspended again for that employee only.
Then we could also suspend the minimum wage for the first year of employment only for people under twenty-five years of age to encourage companies to take on more young people. This would only be for new employees but with the proviso that if an employee under the minimum wage leaves, the company must take on another employer at the minimum wage before he could take on an employee where the minimum wage is suspended.
If an employer takes on people under the suspended rules first, and then sacks employees who have been in before the date we implement this, then they can take the company to a tribunal for unfair dismissal, and if it is shown that the employer has done sacked people to save money, then the compensation should be in the tens of thousands.
Companies should have their National Insurance contributions suspended for each worker who has been out of work for longer then twelve months to encourage them to give long term unemployed a chance.
This will encourage companies to take on more workers (if only half of the five million small companies take on one worker, the employment problem would be over).