The Employment Law Implications of the 2011 Budget

Alongside the budget this week the government published a Plan For Growth. In this the government set out its vision for removing barriers to growth, particularly for small businesses, by removing red tape. Many of the measures set out had been announced previously but the following are new measures:

• Exempting start-ups and employers of fewer than 10 employees from compliance with new domestic regulation due to start from 1st April 2011 for three years.

Concerns have been raised by the Chartered Institute of Personnel and Development that there is a risk that this will create a two tier labour market. The Institute of Directors has also raised issue with this proposal calling for the exemption to be made permanent otherwise it fears employers could be hit by a wall of regulation at the end of the three years.

• Repealing regulations which would have extended the right to request flexible working to parents of children under 18 years of age which were due to come into force on 6th April 2011. Currently, the right to request flexible working is available in respect of children under 17, or under 18 if the child is disabled.

• The provisions in the Equality Act 2010 relating to dual discrimination will not be brought into force.

• A consultation will take place on removing the third party harassment provisions in the Equality Act 2010.

Many have expressed disappointment with the government’s proposals as they failed to contain any significant ideas for deregulation. We will therefore have to wait for the government to put forward more details of the substantial deregulatory proposals it has promised. 

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