Employees that are not productive should lose their right to claim unfair dismissal, according to a leaked Government report.

The report was commissioned by David Cameron and The Daily Telegraph revealed that the report says employees are allowed to “coast along” under rules and can become “impossible to sack”.

The current rules state that an employee that has worked in a role for 12 months or more can claim unfair dismissal.

The Government had already announced intentions to review employment law. However, a statement from Downing Street says changes to unfair dismissal rules are “unlikely”.

The leaked document says: "The rules both make it difficult to prove that someone deserves to be dismissed, and demand a process for doing so which is so lengthy and complex that it is hard to implement.

"This makes it too easy for employees to claim they have been unfairly treated and to gain significant compensation."