New business ‘Employment Charter’ launched

Workers union argues charter is unfair to staff

Carys Matthews 27 January 2011 15:31

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A new ‘Employment Charter’ produced by the government for business owners has been launched today, as it looks to overhaul employment laws.

Created by the Department of Business, Innovation and Skills (BIS), for the government the charter aims to help employers raise awareness and provide greater clarity amongst employers on how to manage their employees fairly and avoid dispute.

The review of employment law comes as tribunal claims rose to 236,000 last year, up 56% on 2009, with businesses forced to spend almost £4,000 on average to defend against a claim. Concerns have been raised by employers that the system has become too costly, takes too much time, and places unnecessary strains on small companies.

According to the prime minister David Cameron, the new charter will reduce unnecessary regulation and give small businesses more confidence to take on new staff and grow.

Mr Cameron said: “Today's announcements on reforms to employment law are among the first conclusions of our government-wide growth review, and highlight our determination to ensure that employment law is no longer seen as a barrier to growth, while making sure that employees and employers are treated fairly.

“Giving businesses the confidence to take on somebody new will be a real boost to the economy, and help generate the sustainable growth we need."

However, Unite, which supports the rights of workers across the country, has strongly criticised the charter, branding it a ‘Charter for bad bosses’, arguing that it even encourages employers to sack staff.

Unite general secretary, Len McCluskey said: "This charter gives bad bosses a green light to bully and intimidate. It even encourages employers to sack staff.

"In reality this does employers no favours. Employers who misinterpret this advice will quickly find themselves in court and the guidance threatens to cause chaos across industry."

The employment law review is looking at employment legislation across government and a model contract for employers is expected to be published shortly.