Oral Answers to Questions

Debate between Alun Cairns and Ed Davey

Thursday 9th June 2011 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

11. What steps he is taking to ensure that employment law supports business competitiveness, job creation and sustainable economic growth.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My Department is leading a comprehensive review of employment-related laws across Government to remove burdens from employers and ensure that our labour market operates effectively. Our consultation on resolving workplace disputes, for example, closed on 20 April, and we will be coming forward with our proposals in the autumn.

[Alun Cairns]

Does the Minister agree that there is a need to reduce employment regulation following Lord Young’s excellent report which talked about businesses operating within a climate of fear; and what progress is he making in reducing red tape in general?

[Mr Davey]

I am grateful for my hon. Friend’s question. I met Lord Young to discuss his views, and he explained that in his meetings with business people they talked about the reality and the perception of red tape, particularly in relation to employment law. We are therefore tackling both aspects with our proposals to reform employment tribunals, our moratorium for micros, and the review of sickness absence and compliance and enforcement regimes. We also published the employers charter to show that the legal position is not as frightening as some employment lawyers would have firms believe.