Author: Matthew Potter

Date: 8th June 2010

Published: Suffolk Business Magazine

From the Coalition Government’s recently published Manifesto (Freedom, Fairness, Responsibility), it would appear that there is going to be no let up in changes to employment law. Despite whatever political party thinks about Europe, the fact is, we will continue to receive legislation from Europe, although the new Coalition have suggested that they will “end the so called gold plating of EU rules so that British businesses are not disadvantaged relative to their European competitors.”

There is a commitment to cut “red tape” for British employers by introducing a “one in one out” rule whereby no new Regulation is brought into force without that Regulation being cut by a greater amount. The effect of this, however, is that from employers having just got use to one set of rules, they will be replaced (at a cost to your business) by another set of rules.

The Government state that they will be reviewing employment and workplace laws for both employers and employees, “to ensure that they maximise flexibility for both parties while protecting fairness in providing the competitive environment required for enterprise to thrive”. Increasing flexibility within the workforce suggests that rather than employees just with children or who have caring responsibilities, that any employee will be entitled to work flexibly and I suspect it shall be for an employer to show a business case why that can or cannot be accommodated. No doubt this is to be assisted by the Government’s promise to ensure the rapid role out of super fast Broadband across the country, to ensure that workers may be able to work from home as part of their request to work flexibly.

One change that has not hit the headlines is the fact that the Government have stated that they will be reviewing the IR 35 Rules as part of a review of “all small business taxation”, and there is a proposal to introduce simpler measures that will prevent tax avoidance but without placing administrative burdens or uncertainty on the self-employed. A challenge indeed, especially for a Government who are seeking to reduce the deficit.

There is a promise that the Government will promote equal pay and end discrimination in the work place whilst also looking to promote gender equality on the Boards of listed companies. There is a sense of irony there bearing in mind that the current new Coalition Government only has one female on its “Board”.

The default retirement age currently at 65 will be reviewed and there will be a date set at which the State Pension age starts to rise to 66, although it is envisaged that this will not be sooner than 2016 for men and 2020 for women. So much for the promotion of equality between the sexes.

On immigration, there is a promise to introduce an annual limit on the number of migrants submitted into the UK to live and work. There is consideration being given to a mechanism for implementing the limit and no doubt this will mean further Regulation on employers in terms of the steps that they take regarding employing non EU economic migrants and penalties for failure to follow those requirements.

The National Minimum Wage continues to be supported although one suspects it depends upon how much pressure the Government comes under from the Unions with regards to the extent that the NMW will increase by anything other than the RPI.

With proposed job cuts within the public sector, one expects there to be a testing time for both employers and employment lawyers over the coming years.

This article is for general information purposes only and does not constitute legal or other professional advice. You should not act or rely upon this information.


Matthew Potter
Partner & Head of Employment Law

Tel: 01473 232425

Email: matthew.potter@ashtonkcj.co.uk