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 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 requests. Regulation 14 of the new legislation sets out the law regarding this scenario, but cross reference 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 issues 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.”
Suzanne Caldwell, Managing Director at Cumbria Chamber of Commerce, said:
“Businesses 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.
“If the 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.
“The introduction of new regulations and guidelines needs to be phased so that businesses can get to grips with them. Jumping in feet first with deadlines for compliance risks confusion and unintentional complications.
“As a member of Cumbria Chamber of Commerce, you have access to specialist support through Chamber Protect, delivered by our service provider Quest, who can assist when HR and employment issues arise.
“We also have a dedicated Employment Rights Act page on our website where you can see the key upcoming changes.
“Quest also offer an Employment Rights Act compliance review, designed to help you understand exactly what these changes mean for your business and where action may be required.
“If the government is set on introducing these new systems, then it needs to make it as easy as possible for business to get onboard.”
Cumbria Chamber of Commerce is an accredited member of the British Chambers of Commerce.
