Now, we’ve made it clear many times that we have massive concerns not
only about the content of the changes to employment law that are coming but
also the reasons behind them. It seems that the Government’s own recent
research now completely supports our concerns.
The Government said we are over-burdened by ‘red tape’ and regulation –
yet the current Minister for Employment Relations wrote last week that “the UK...has one of the most lightly
regulated labour markets in the world” and ”burdens from employment law (in the UK) are low by international standards”. She confirmed that we are the
third least, yes least, regulated
major economy, just behind the US and Canada and we have less employment law
than every other European economy as well as South Africa, Australia, Russia,
Chile, Korea, Brazil, India, China and the list goes on and on. The OECD
figures (which the Government agrees with) confirm that we have one third of
the employment protection of China and half that of Germany[1].
A previous Government report accepted that UK employment regulation was already
in “good shape”[2].
I should make clear that the above research was done before the majority of the
Government’s changes are due to take effect just after this Easter.
They said we have too many Tribunal claims – the latest ET statistics
show new ET claims have dropped 15% on the previous year[3].
Other Government statistics show that in 2011 96% of UK workplaces had no
claims made to a Tribunal by any employee; in other words the percentage of
workplaces in which an employee made a Tribunal claim was 4%[4].
Further, the Government’s report accepts that Tribunal claims are “relatively rare”.
They say that the Tribunal’s compensation is far too high – the most
common award for Unfair Dismissal is only £4,560[5].
It seems that recently even the Government has accepted the fact that
the truth does not support their case for change. Their new tack is to argue
that in fact it is the “perception”
of business (which they admit “may often
be misconceived”) that has “given rise to perceptions that employment
law is costly, time-consuming and over-bureaucratic” (this is the Minister
again)[6],
hence why change is required.
But does business really have such a perception? Back to the
Government’s own research – this has found that business says “employment regulation was generally
considered both necessary and fair” and it concluded that any perception of
employment law as burdensome has been worsened by the ‘anti-regulation’ debate (which itself has been heightened by the
Government!)[7].
So, at best the evidence for change is based on perceptions, which may
not really exist and are “often
misconceived” - surely a weak basis on which to drive massive Government
changes to the law?
[1]
Page 11 BIS Employment Law 2013: Progress on reform, March 2013
[2]
BIS Employment Regulation Report, September 2012
[7]
BIS Employment Relations Series 123, Employment Regulation, March 2013
David Sorensen - Partner
David Sorensen - Partner
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