Business groups question Government’s red tape commitment

Business groups have questioned the Government’s commitment to cutting red tape, following the announcement of its Modern Workplaces consultation.

The consultation includes plans to introduce a new system of flexible parental leave from 2015, extend the right to request flexible working to all, and force companies found guilty of gender pay discrimination to undergo compulsory gender pay audits.

David Frost, Director General of the British Chambers of Commerce (BCC), said:

“Our economic recovery is far from secure, but ministers are yet again tinkering with employment legislation. These kinds of laws create huge uncertainty for employers, and prevent them from taking on more staff. Last week, the Government won praise from business when it said it would streamline some costly employment regulations. But this announcement shows they are giving with one hand and taking with the other.

“At a time when the Government is looking to reduce unemployment, making further changes to employment legislation is absurd. We have to ask the Government what level of growth they expect to see from businesses dealing with yet more regulation.”

John Walker, National Chairman of the Federation of Small Businesses, said:

"The Government has committed to reducing the amount of red tape that small firms have to wade through in running their businesses. Yet, it wants to introduce additional complexity and new legislation, making it even more complicated and time consuming in the process.

"For a small firm, organising cover and workloads for a member of staff that has decided to take chunks of parental leave from work – not a continuous period of time – will be extremely burdensome and difficult to administer.

"Small businesses already provide flexible working for their employees and so we would urge the Government not to formalise this process as it would just add to the red tape burden on small firms.

"The Government is looking towards the private sector to lead the recovery but with many businesses already wary about taking on staff, there is a danger that changes to these rules could add to their concerns. So, we look forward to responding to the consultation to ensure that the smallest businesses get their say."

However, Sarah Jackson, Working Families Chief Executive, commented:

“Working Families has long campaigned for the right to request flexible working to be available to all employees.  Making flexible working more widely available will change working cultures and benefit families.  Parents find it easier to ask for changes where flexibility is the norm.  We warmly welcome the proposed extension of the right to request flexible working.

“The right to request legislation has worked – it is simple and effective and sets out clear rights and responsibilities for employers and employees.  Many good employers already offer flexible working rights to all employees.  Where employment relations are good, employees don’t need to resort to statutory rights.  But the law provides a useful backstop when employers say ‘no’ without considering a request.  Improved guidance would be helpful, but replacing statutory duties with a code of practice needs careful handling.  There is a danger that employees’ rights are watered down while employers face less certainty - with judges, not government, deciding whether their response to a request for flexible working is ‘reasonable’.

“We welcome further reform of parental leave arrangements and in particular more rights for fathers.  Evidence suggests that ‘shared leave’ is used by mothers, so a use-it-or-lose it month for fathers should stimulate take up.  We welcome the proposal that parents could use their leave to work part time to ease the return to work after a new baby is born. This would benefit employers too if employees return to work sooner, but on a less than full-time basis.”