Ministers deny rights of employees are being watered down as red tape targeted

Employment law has become the latest area of regulation to be scrutinised as part of the government’s so-called Red Tape Challenge, although ministers insisted that this would not lead to the dilution of employees’ rights.

The review is to focus on more than 160 different regulations and asks for comments on whether they should be abolished, improved or simplified, “whilst also ensuring that the current standard of employment rights for employees are maintained”.

Among the areas to be covered are:

• Rules on collective redundancies
• Employment agencies
• Immigration checks
• The National Minimum Wage
• Statutory sick pay

The launch of the latest stage of the Red Tape Challenge came as ministers confirmed plans at the Conservative party conference to increase the qualifying period for unfair dismissal claims from one to two years and to introduce fees in order to bring Employment Tribunal claims.

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 managing 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.”

The government has also published a discussion paper, Flexible, effective, fair: Promoting economic growth through a strong and efficient labour market, that is intended to set out the principles guiding its approach to reform of the labour market framework.