The Government is in danger of putting the cart before the horse as it rushes to bring in new elements of its Employment Rights Act.
The British Chambers of Commerce is becoming increasingly concerned that parts of the new legislation are being introduced before any guidance has been issued to employers.
The introduction, today (Friday 30 October) of the statutory right of unions to gain access to workplaces and workers is a clear example of the problem.
Although employers are now expected to let unions into their premises to speak to staff, they are still waiting for answers from Government on a range of practicalities.
For example, it is unclear how employers are required to handle multiple concurrent access requests. Regulation 14 of the new legislation sets out the law regarding this scenario, but cross references multiple different clauses within the regulations and other additional legislative instruments.
To a small business with no legal expertise this would be extremely time-consuming to unravel with no guarantee it has got it right. This highlights the need for simple, plain English guidance to ensure employers can understand their obligations.
The issue comes just two days after analysis included in the Office for Budget Responsibility’s Economic and Fiscal Outlook for October found that:
‘The ERA will likely have a negative economic impact from negative impacts on businesses, particularly through increased uncertainty, lost flexibility and higher labour related costs, which will more than offset any potential positive impact on worker productivity.’
Patrick Milnes, Head of People and Work Policy at the BCC, said:
“Businesses urgently need clarity on the new trade union access regulations, which have come into force today.
“They have been given no guidance on how to apply them, which limits their understanding of how the rules will operate in practice.
“It also means that SMEs, who do not have dedicated HR departments and legal teams, will have to spend time and resources trying to work out what they should do.
“If these reforms are going to be a success, they need to be implemented in a practical and workable manner that gives businesses time to prepare and deliver changes effectively.
“It is a very disappointing approach. The introduction of new regulations and guidelines needs to be phased so that firms can get to grips with them. Jumping in feet first with deadlines for compliance risks confusion and unintentional complications.
“If the government is set on introducing these new systems, then it needs to make it as easy possible for business to get onboard. The current approach is doing the exact opposite.”