Employment Rights Bill slammed as ‘not fit for purpose’ by watchdog
Labour’s Employment Rights Bill is ‘not fit for purpose’ according to a formal assessment by a leading government body.
The Bill, which is being spearheaded by Angela Rayner, is aimed at tackling low pay, poor working conditions and a lack of job security. However, the Regulatory Policy Committee (RPC) has said the government’s own impact assessment lacked “evidence to support the problem being addressed” and expressed concern that “the proposals [contained in the Bill] could make it more difficult for those unemployed or economically inactive to access jobs.”
The RPC argued that “without understanding the direct macroeconomic impacts on employment, wages and output, it is not possible to validate the departments’ estimated impacts.”
The Committee gave the Bill a red rating, the lowest possible on its assessment scale.
It also highlighted that the Institute for Fiscal Studies “noted that it generally expects much, and potentially close to all, of the cost [of new regulations] to be passed through to lower wages.”
Commenting on the RPC’s findings, the Federation of Small Businesses (FSB) urged the government to heed the “sharp wake-up call” and address concerns around the Bill.
Tina McKenzie, Policy Chair of FSB, said: “The RPC’s findings support the concerns that FSB has been raising about the disproportionate impacts on small employers. Red rating after red rating demonstrates that the proposed legislation has simply not been thought through.”
McKenzie added: “This is a sharp wake-up call for Ministers who must think again about the dangers of a cavalier approach to jobs and work. The country cannot afford to pile further cost and risk on to small employers based on such an overwhelmingly weak evidence base.”
A government spokesperson said: “This government has delivered the biggest upgrade to people’s rights at work in a generation. Our plan to Make Work Pay sets out an ambitious agenda to ensure employment rights are fit for a modern economy, empower working people and ensure working people are better off.”
“These initial, indicative assessments of the primary legislation represent the best estimate of likely impact at this stage. However, we intend to refine our analysis and conduct further assessment as the Bill progresses – working with experts and businesses.”