Issue 51, April 2011
Budget 2011: 'Plan for Growth'
Employment Law - What are the implications?
The 2011 Budget was published on 23rd March 2011 by the
Government, accompanied by its 'Plan for Growth' document -
setting out the Government's vision for removing barriers to
growth by removing red tape, especially that surrounding small
Read the full Budget 2011 PDF
document via the HM Treasury website.
Many of the
employment-related measures that were announced, you may
already have known, however there were a number of additions
that as an employer you should be aware of. Below
is a summary of the key points:
the full 'Plan for Growth' PDF document via the HM Treasury
Cutting the Red Tape
and small business from new laws. From 1st
April 2011, start-up companies and employers of fewer than
10 employees - "micros-businesses" - will be
compliance with new domestic regulations for three
Removing the extension
of flexible working.
extending the right to request flexible working to parents
of children under 18, which was due to take effect from
6th April 2011.
harassment. The Government will consult on
removing the third-party harassment provisions in the
Equality Act 2010 which require an employer to take
reasonable steps to protect employees from third-party
Not bringing into force the dual discrimination provisions
contained in the Equality Act 2010.
What's not so new?
In an effort to reduce the number and
complexity of regulations that businesses must comply
with, the following measures have been proposed:
Undertaking a public
audit of existing regulation. Launching a
public review of current regulations with a view to
removing those which are "excessively burdensome". over
21,000 regulations, grouped into themes, will be reviewed
and made open to comment.
Changing the health
and safety regime.
This will involve
removing automatic health and safety inspections for
"reasonable employers" (with a concentrated effort to
target more "high risk locations"), regulating
health and safety consultants, reviewing health and safety
law to remove unnecessary regulation and introducing online
guidance with information in health and safety contained
in one place.
Not extending the
right to request time off to train for
companies of fewer than 250 employees, contrary to recent
employment tribunals system. This already is
subject to a public consultation, including the
possibility of introducing fees and increasing the
qualifying period for unfair dismissal from one to two
Read the CIPD Budget response: jobs, the
moratorium on employment regulation for small firms and
pension reform, CIPD, 23rd March 2011.
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