Ministers urge businesses to tackle employment red tape
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03 October 2011 - BIS
Businesses have today been called
upon by ministers to help tackle employment related law, bureaucracy
and red tape in the latest phase of the Employment Law Review.
For the next three weeks the Red Tape Challenge will focus on
more than 160 different cross-Government employment related regulations
that businesses have to deal with in all areas of the workplace.
The campaign asks for a variety of suggestions about how
regulations can be improved, simplified or even abolished, whilst also
ensuring that the current standard of employment rights for employees
are maintained. Examples of regulations Government is seeking views on
include the rules on collective redundancies, employment agencies,
immigration checks, the National Minimum Wage and statutory sick pay,
to make sure they are fit for purpose and easier for businesses to
understand.
Business Minister David Willetts said:
"Businesses regularly tell us that the burden of regulation is
too high. So today we are giving them a chance to tell us exactly which
rules they think need to be reformed. The Government is committed to
growth and the Red Tape Challenge is one way to make sure that we are
getting out of the way and letting businesses do what they do best -
taking people on and boosting the economy.”
Employment Relations Minister Edward Davey said:
“We often hear from businesses that employment related
regulation holds them back from growing their firms and employing more
people. Whether it is the filling out of endless forms when you hire
your first member of staff, the complexities of letting somebody go, or
simply manage staff on a day-to-day basis, we want to review these
regulations with the aim of giving business more confidence in
employing people and creating more jobs.
“We are determined to tackle unnecessary, burdensome red tape
that harms job creation and means employers spend less time running
their business. But this does not mean this will result in a watering
down of employee rights. Today we are launching a real debate with
employers and employees, to listen to their thoughts and act on what
regulations can be simplified, merged and abolished. This is your time
to get involved and have your say on your employment law bugbears.”
Group Chief Executive of Bio Group and Sector champion for the
employment law theme Steve Sharratt OBE said:
"In business we often feel our voice is not heard in
Whitehall, yet I think this is a real opportunity for SMEs to impact on
Government thinking and policy on employment regulation. Let's see what
business can do in making a difference, by saying loudly and clearly
what is good and bad in the current regulations, what is effective and
what is frankly ridiculous and how business believes regulation can be
made shorter and simpler."
The Government will publish the results of the employment
related law Red Tape Challenge theme later this year. A discussion
paper, entitled ‘Flexible, effective, fair: Promoting economic
growth through a strong and efficient labour market,’ has
also been published today. This paper sets out the principles that are
guiding our approach to reform of the labour market framework along
with a number of thematic questions.
Notes :
- The Red Tape Challenge was launched by the Prime Minister
on 7 April. It gives the public the chance to have their say on some of
the 21,000 regulations that affect their everyday lives. The website is
available at http://redtapechallenge.cabinetoffice.gov.uk
- The campaign has six cross cutting themes that affect all
businesses and are open throughout the whole of the campaign. The six
cross cutting themes are:
- Employment law;
- Pensions;
- Company law;
- Equalities;
- Health and Safety; and
- Environment legislation.
- For each sector theme, there is one or more experienced
‘sector champions’ who will provide expert knowledge on the issues
faced by those on the shop floor. The champion acts as an intermediary
between the sector and Government and help to direct the web-based
debates and discussions.
- Steve Sharratt OBE is Group Chief Executive of Bio Group.
Steve is a member of the Climate Change Board, the Environmental
Leadership Group of BITC, the Advisory Group to the May Day Climate
Change Business Summit, is Chairman of CBI Eastern Region Council, is a
member of HMRC Administrative Burdens Advisory Board and Chairman of
the Princes Trust for Suffolk. He was awarded the OBE in 2009 for
services to business. A blog by Mr. Sharratt on the Challenge process
can be found at http://blogs.bis.gov.uk/
- The Government’s plan for growth is available at http://cdn.hm-treasury.gov.uk/2011budget_growth.pdf
- The Challenge process does not include legislation or
regulations falling within the responsibilities of the devolved
administrations.
- The Employment Law Review is a Parliament long review
looking at all aspects of employment law and is part of the
Government's plans to deliver growth by breaking down barriers,
boosting opportunities and creating the right conditions for businesses
to start up and thrive. Since the review was announced last summer the
Government has:
o Consulted on a package of reforms to the employment tribunal
system, aimed at encouraging earlier resolution of disputes in the
workplace and reducing the number of tribunal cases (which are costly
for employers, employees and Government)
o launched an Employer’s Charter that reassures employers
about what they can already do to deal with staff issues in the
workplace
o launched a review of the compliance and enforcement regimes
for employment law, with the aim of streamlining the system
o removed the Default Retirement Age, thus removing
significant paperwork obligations for employers and bringing wider
benefits to the economy, making it easier for older people to continue
working
o announced the proposed abolition of the Agricultural Wages
Board and Agricultural Minimum Wage, pending consultation and the
Parliamentary process
o commissioned an independent review jointly with DWP (from
David Frost and Dame Carol Black) of the system for managing sickness
absence
o repealed the planned extension of the right to request
flexible working to parents of 17 year olds
o decided not to bring forward the dual discrimination
provision in the Equality Act
o not extended the right to request time to train to companies
with fewer than 250 staff.
8. The labour market discussion paper entitled, ‘Flexible,
effective, fair: Promoting economic growth through a strong and
efficient labour market,’ can be found at http://www.bis.gov.uk/assets/biscore/employment-matters/docs/F/11-1308-flexible-effective-fair-labour-market
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
