Employment Law

Lord Layard Excerpts

Monday 21st May 2012 Lords Chamber

[Lord De Mauley]

My Lords, of course I will draw that to the attention of my right honourable friend.

[Lord Layard]

Is the Minister aware of the great amount of academic research on the impact of employment protection legislation which has gone on over the last 15 years? The standard finding of this research is that employment protection legislation has no positive or negative effect on the level of employment. The reason is very simple: as is constantly said, of course, if it is easier to fire people, you are more likely to hire them; but you are also, believe it or not, more likely to fire them. The two balance out. Are the Government aware of this research?

[Lord De Mauley]

My Lords, I am aware of a considerable amount of research. I bow to the noble Lord’s greater knowledge of the academic research, of course. The Government are absolutely committed to flexibility for employers and employees. We have consulted and continue to consult widely on a number of issues and, as I have said before, we will not take action unless it is on the basis of evidence.