Budget Good News for Employers

The Budget was published on 23rd March 2011, together with another document called Plan for Growth. Those two documents together detailed 7 important points for employers:-

1. The government has committed to a “one in, one out” rule for employment regulations which means that for every new regulation brought in, one will be repealed. The impact of this is likely to be significant particularly as all small businesses struggle to cope with the immense volume of employment legislation. It is thought that over 21,000 employment regulations will now be reviewed. Amalgamation may be the name of the game but it should make employment regulations more straight forward.

2. From the 1st April 2011 until 30th March 2014 all start up business and small business with fewer than 10 employees will be exempt from any new UK legislation.

3. The right to request flexible working had been due to be extended to parents of children aged under 18 with effect from 6th April 2011. This has now been scrapped and the right to request flexible working remains only open to those with children aged under 17 (18 if the child is disabled).

4. It had been planned that the right to request time off to train, which is available where employers have 250 or more employees, was to extend to all employees. This has now been scrapped.

5. Changes to the employment tribunal system are being consulted on with a view to trying to reduce the number of claims. Ideas that have been put forward so far include the introduction of issue fees and increasing the qualifying periods for bringing a claim from 1 to 2 years.

6. The government will now consult on whether the proposal under the Equality Act 2010 to bring in new legislation which would place a responsibility on employers to prevent harassment from third parties is an “unworkable requirement”.

7. Under the Equality Act 2010 the concept of dual discrimination had been proposed. This has now been scrapped.