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UK Government Proposes Smarter Regulations To Reduce Burdens on Businesses

The first of the Government's regulatory reform announcements this week focusses on how smarter regulation across the UK economy can help "reduce burdens, push down the cost of living and drive economic growth". The policy paper has given a first glimpse into its future strategy to reform employment law following the UK's exit from the European Union.

The current Working Time Regulations provide a number of valuable employee protections which place time-consuming and disproportionate burdens on businesses. The Government proposes to improve these regulations with forthcoming changes without affecting the rights of employees. 

What are the forthcoming changes to employment law and what does this mean for employers?

  • Removing the need for businesses to keep records of all its employees' working hours - this will cut the red tape for businesses and could help them save £1billion per year. 
  • Introducing rolled-up holiday pay - this means that all employees on zero-hour or casual contracts will receive their holiday pay with every payslip. By merging the current two separate leave entitlements into one, the administrative burden and complexity of calculating holiday pay will be reduced without affecting the overall statutory leave entitlement. 
  • Limiting non-compete clauses to three months - this will provide employees with more flexibility and freedom when joining a competitor or rival business after leaving a position. This will allow employees to apply their skills elsewhere and will provide a boost to the wider UK economy. This limitation will not interfere with an employers ability to use notice periods or gardening leave. 
  • Changes to TUPE regulations for when a business undergoes new ownership or when a service transfers to a new provider - simplifications will find businesses with fewer than 50 employees and transfers affecting less than 10 employees being able to consult directly with the employees affected. These changes will save businesses "red tape" and simplify the transfer process whilst ensuring that the rights of the employees remain protected.

These regulations are the first steps being taken by the Government to ensure that "the UK is the most competitive and innovative economy in the world". They aim to take the appropriate actions to ensure that red tape does not affect businesses from expanding or competing. 

It is important to remember that these amendments are currently proposals and that any changes to employment law will not affect businesses as of yet. 

 

Do you need further advice on the changes discussed in this blog? Call us on 01656 336097 or email us at [email protected] and we will be happy to help!

 

UK Government Proposes Smarter Regulations To Reduce Burdens on Businesses
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