The Plan For Growth - The Employment Law Implications

Date Added: 30 March 2011

Since coming to power the Coalition Government has made various noises regarding its intention to cut red tape for businesses. On Budget Day the Government unveiled what is called the “Plan for Growth”. It contains a number of new initiatives:-

• 1. Exempting ‘start ups’ and small businesses from new laws. The Government plans to introduce a moratorium for start ups and employers with fewer than 10 employees, exempting those companies from compliance with new domestic regulations. The plan is for the moratorium to last 3 years and and cover all new domestic regulation due to start from 1st April 2011.
• 2. Removing the extension of flexible working. The Flexible Working Regulations 2010, which would have extended the right to request flexible working to parents and children under 18 years of age, which were due to come into force on 6th April, are going to be repealed.
• 3. The provisions on dual discrimination contained in the Equality Act 2010 will not be brought forward.
• 4. Third party harassment. The Government will consult with a view to removing what has been described as the “unworkable requirement” that employers take reasonable steps to prevent third party harassment (Section 40 of the Equality Act 2010).

Other plans and initiatives have been restated:-

• 1. Public Audit of existing regulation. Over 21,000 regulations will be reviewed and made open to public comment. There will be a presumption that Regulations identified as burdensome will be removed unless good reasons are given for them to remain.
• 2. Changing the health and safety regime. This will involve removing automatic health and safety inspections for “responsible employers”, regulating unqualified health and safety consultants, reviewing health and safety law to remove unnecessary regulations and introducing online guidance with information on health and safety contained in one place.
• 3. Not extending the right to request time off to train for companies with fewer than 250 employees.
• 4. Reforming the Employment Tribunal system, which is already subject to a public consultation, including the possibility of introducing fees and increasing the qualifying period for unfair dismissal from one year to two years.

Conclusion

The Government has indicated that it is committed to making further changes to employment legislation to reduce the cost to businesses of compliance. Watch this space for further developments.

If you have any questions about the ‘Plan for Growth’ or any other employment issues, please contact Martin Stevens at mds@hallettandco.co.uk or Darren Thorneycroft at dct@hallettandco.co.uk or, alternatively, on 01233 625711.

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