Summary of Employment Rights Bill Assessment by the Regulatory Policy Committee
The Regulatory Policy Committee (RPC) has recently released a critical evaluation of the impact assessments (IAs) associated with the Employment Rights Bill. These IAs are crucial as they are intended to justify and provide guidance for the Bill’s proposals.
Employment Bill Summary
Unfortunately, the RPC has rated the overall quality of these assessments as ‘red’—the lowest possible rating.
Initially, the government published a summary IA along with 23 separate IAs, each addressing specific measures within the Bill. The RPC reviewed these and found that eight of the 23 individual IAs were ‘not fit for purpose.’ Notably, six of these fall under the ‘highest impact’ category in the summary IA.
The proposals receiving the ‘red’ rating include:
- Day 1 Unfair Dismissal Rights
- Repeal of Trade Union Rights 2016
- Flexible Working Changes
- Harassment by Third Parties
- Repeal of Strikes (Minimum Service Levels) Act 2023
- Establishing a Fair Pay Agreement
Additionally, the provisions concerning guaranteed hours for workers on zero-hours contracts were also critiqued, particularly for their identification of options and the justification for the chosen approach.
The RPC recommends that, given the extensive scope of these proposals, the impact assessment should include a thorough analysis of the labour market and broader macroeconomic factors. This would help to understand the overall implications on employment, wages, and productivity, and how employer costs might be passed on to employees, along with other dynamic impacts.
The RPC’s unfavourable assessment raises significant concerns about the Bill’s readiness and the government’s strategy for its implementation. As of time of writing, the government has not issued a response to these criticisms. The Bill is currently at the Committee stage in the House of Commons, indicating that there is still time for revisions and improvements based on the RPC’s feedback.
Businesses should closely monitor this situation as the developments could lead to substantial changes in employment law, impacting various aspects of employer-employee relationships.
Staying informed and preparing for potential adjustments will be key to navigating these legislative changes effectively.