Regulation and the labour market
Analysis of suggested changes to employment regulation through the Employment Rights Bill, highlighting the challenges policymakers should take into account
Analysis of suggested changes to employment regulation through the Employment Rights Bill, highlighting the challenges policymakers should take into account
Through its plan to Make Work Pay, the UK Government has set itself an ambitious agenda to improve labour market performance, work quality outcomes, productivity and growth. The CIPD widely shares and supports this mission.
There is aways a place for sensible and proportionate legislation on labour market regulation that tackles problems in an effective way, and promotes choice and opportunity for workers, as well as offering protections at work.
However, the impact of changes to regulation on employer behaviour and their recruitment and people management decisions need to be fully explored and any potential risks and unintended consequences understood.
This report highlights some of the challenges and issues that need to be taken into account by policy makers to ensure that proposed changes to employment regulation
have their hoped-for effect.
A good example of where caution and potentially compromise is needed is the proposal to remove the two-year unfair dismissal qualifying period as part of its plan to create day-one employment rights. It is plausible that removing the unfair dismissal qualifying period could have some adverse impacts on the distribution of employment, including but not limited to:
Read our full analysis below, where we highlight our proposed long-term approach of focusing on encouraging good workplace practice and support for organisations to implement them, backed by effective enforcement. We also cover the new Fair Work Agency and the need for a new labour market enforcement strategy.
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