Major Review of Employment Laws

It has been reported that the Chancellor, George Osborne, has this afternoon told the Institute of Directors that he is planning a major review of key employment laws in order "to support private sector growth and create jobs".

 

Legislation coming under the microscope will include the TUPE Regulations and the rules governing information and consultation where there are collective redundancies.  Mr Osborne will also take a look at compensation in discrimination cases and whether there should be a cap on awards in those cases.

 

As all employers will know, the TUPE provisions and those relating to collective redundancies are some of the most onerous and bureaucratic in the field of employment law: often one small mistake is enough to leave a company liable for compensation for hundreds of employees.

 

A reduction in the burden on employers in those situations will be welcomed by companies but the unions will fight hard against proposals which could diminish their influence in large scale redundancy programmes and the sales of companies.