Date: 21 July 2007

Source: House of Commons

In its document - The Governance of Britain – The Government’s Draft Legislative Programme, HM Government has announced plans to simplify the current employment regime.

Globis welcomes the Governments intentions to simplify the current dispute resolution regulations saving UK Business an estimated £180 million /year. This provides UK leaders with part of the business case for improving relationships at work.

The purpose of the bill is to simplify, clarify and build a stronger enforcement regime for key aspects of employment law.

The purpose of the bill is to:

• Simplify, clarify and build a stronger enforcement regime for key aspects of employment law.

The main benefits of the bill are:

• Significant administrative savings for businesses, specifically through legislation to implement the Gibbons review of workplace dispute resolution, with an estimated benefit to business of up to £180m/year;
• Further cost and time savings for businesses, trade unions, individuals and public sector bodies;
• Delivering a more straightforward and transparent enforcement and penalties regime for the national minimum wage (NMW) and employment agency standards, to provide greater support to vulnerable workers, fair arrears for the underpaid and a level playing field for compliant businesses
• Greater clarity for employers, trade unions and employees
• Compliance with European Court of Human Rights (ECHR) judgment in Aslef v UK 

The main elements of the bill are:

• Implementation of the outcome of the Gibbons review of workplace dispute resolution (including repeal of the statutory dispute resolution procedures and implementation of a package of replacement measures to encourage early/informal resolution and changes to the employment tribunal system.
• Clarification and strengthening of the enforcement framework for the NMW, specifically through the introduction of a straightforward penalty that can be levied against all non compliant businesses and a fairer method of calculating arrears.
• Strengthening the employment agency standards enforcement regime by making offences under the Employment Agencies Act each way offences and clarifying investigative powers.
• An amendment to trade union membership law in light of the ECHR’s judgment in Aslef v UK (such that trade unions can expel members on the basis of their membership of a political party).
• It might also be necessary to use the Bill to clarify provisions in the NMW Act related to voluntary workers, depending on the outcome of current consultation which closes 4 September.

Globis will monitor this Bill as it passes through Parliament and we will keep our website fully up to date. Anyone with additional information about this Bill or associated Parliamentary discussions are invited to contact us. Further details of the Bill can be found by clicking the link below:

Related links :

The Governance of Britain – The Government’s Draft Legislative Programme

Related Documents:

• Consultation on workplace dispute resolution