Government is to review employment law

The government has announced a “wholesale” review of employment law, including the TUPE (Transfer of Undertakings (Protection of Employment)) regulations, which ensure that staff moving from the public sector to the private sector receive equivalent terms and conditions; rules on redundancy; and the amount of compensation awarded by employment tribunals.

Speaking at the Institute of Economic Affairs, the minister for employment relations, Edward Davey, a Liberal Democrat, emphasised the importance of the review for cutting employment red tape and making it easier for businesses to operate. “The areas we are reviewing are priorities for employers,” he said. “Fairness for individuals will not be compromised—but where we can make legislation easier to understand, improve efficiency, and reduce unnecessary bureaucracy we will.”

The review will look at introducing a cap on the level of compensation awarded by employment tribunals in cases of discrimination and reducing the period of time that employers are required to consult on collective redundancy plans. It will also look at whether the TUPE rules are “gold plated” or overly bureaucratic.

The public sector union Unison has warned that the plans could weaken employment rights, making it easier for bosses to fire workers and harder for staff to challenge unfair treatment.

Dave Prentis, Unison’s general secretary, said, “The Tory review of employment law will hit ordinary working people hard. The government is weighting the jobs market heavily in favour of bosses, who will be able to hire and fire their staff at will.”