IoD set to impose employment law changes

  7th May 2013      
 Company News

The Institute if Directors (IoD) has spoken out to the business secretary Vice Cable in a blast of employment law changes they deem necessary for business growth to be put forward at the Queen’s speech this Wednesday.

They are seeking to give more control back to employers, while maintaining adequate and fair rights to employees but removing unnecessary red tape and over complicated bureaucracy mounted on by the EU in an attempt to encourage UK business growth.

The three initiatives to be put forward are those made in a statement set out as follows:

–    The ‘Midas’ Bill – Successive Governments have implemented EU directives over-zealously, resulting in greater burdens for business than necessary. Two prime examples are the Agency Workers Directive and the Working Time Directive. The Government should introduce a bill to strip back all of this ‘gold-plating’, and make it clear that in future only the minimum required by the directive will be brought into UK law.

–     The ‘Beyond Beecroft’ Bill – De-regulating the employment market would set business free to grow. A Bill which introduced ‘compensated no-fault dismissal’ as suggested by Adrian Beecroft, a three-month notice period for employees who do not wish to return from maternity leave, and enshrined the Government’s One-In, Two-out regulatory principle in law would make businesses feel that the tide has turned on regulation.

–     The ‘Too Big to Strike’ Bill – Through a series of mergers, the trade unions have become divorced from their original purpose, no longer representing workers from specific industries and able to cause disruption beyond the site of the original dispute. The Government should give powers to an organisation like the Competition Commission to investigate union mergers. Recent industrial action based on small turn-outs also makes the case for a change to the law, so that only strikes backed by the majority of a union’s members could take place.

IOD’s Director General Simon Walker said: “This is probably the government’s last chance in this parliament to announce new legislation to boost businesses and the economy. Nearly half of businesses think that regulation is holding them back. Ministers should seize this opportunity to tackle the issue head on.”

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