The Prime Minister has announced plans to cut red tape for employers as a part of the government’s review of retained EU laws and also with a view to future regulations.
Currently small businesses (which the EU defines as fewer than 250 employees) are exempted from certain reporting requirements, but the government has stated that notwithstanding this, employers with between 50 and 249 employees report spending over 22 staff days per month dealing with regulation and red tape. The announcement means that those with fewer than 500 employees will not be considered small businesses and therefore be exempt from some of the red tape affecting employers.
It is not clear what scope this announcement has and whether it will apply to all workers’ rights or whether only to a select few such as gender pay gap reporting.
The Financial Times is reporting that the government is considering going even further and withdrawing some or even all employment rights for employees earning over a certain amount, with some suggestions that the amount could be as low as £100,000 or £56,000. This would be a truly dramatic step and it would appear unlikely that, for example, a pregnant employee would be denied maternity leave simply because she earns £56,000 per year.
It is clear that there is going to be a concerted effort to release some of the regulations affecting the workplace over the next 18 months or so.
If you have any queries relating to any of these changes please do speak with our specialist team of employment solicitors on 0345 646 0406 or fill in our online enquiry form to discuss this further.