In an article in the Financial Times on 14th January 2021, it was suggested that the Government was about to weaken workers rights as part of "plans to rip up EU labour market rules." However, later that day, the business secretary, Kwasi Kwarteng, denied the reports.
Workers Rights
Later this year, it is anticipated that the Government will finally introduce its new Employment Bill, which was first announced in the 2019 Queen's Speech. One of the reasons for the delay in the legislation, was the need to await the outcome of the Brexit related trade negotiations between the UK and the EU. In the new trade deal, there is a ‘non-regression clause’ in which there is a commitment by both sides not to reduce or weaken workers rights that were in place as at the 31st December 2020, in a manner that would have a detrimental impact upon trade and investment.
Given the above, the plans it was suggested were being contemplated in the above mentioned Financial Times article, were extremely surprising.
The suggested plans, which focus upon measures that were implement under the EU’s Working Time Directive, include the following:-
- An end to the 48 hour working week
- Changes to rest breaks
- Removing overtime pay from holiday pay entitlement
- No longer requiring the logging / reporting of working hours on a daily basis
Were these measures on workers rights to be implemented, then it is likely that the EU would have a compelling argument that the UK had breached the non-regression clause within the trade deal, as it is hard to see how the UK could plausibly argue that such changes had not had a detrimental impact upon trade and investment for the EU, from which the UK had benefitted, although first of all the EU would need to the commence proceedings and successfully argue that the UK had gained an unfair advantage in the process.
Business Secretary's Denial
In a tweet on the 14th January 2021, published in response to the aforementioned Financial Times article, the business secretary, Kwasi Kwarteng, stated: "We are not going to lower the standards of workers’ rights The UK has one of the best workers’ rights records in the world - going further than the EU in many areas We want to protect and enhance workers’ rights going forward, not row back on them."
A Government spokesperson later added in a similar vein: "We have absolutely no intention of lowering the standards of workers’ rights. The UK has one of the best workers’ rights records in the world, and it is well known that the UK goes further than the EU in many areas. Leaving the EU allows us to continue to be a standard setter and protect and enhance UK workers’ rights."
Suggested Changes To Workers Rights Condemned
The suggestion that workers rights could be diluted was met with condemnation. Indeed, the Labour Party's shadow business secretary and former leader, Ed Miliband, stated: "These proposals are not about cutting red tape for businesses but ripping up vital rights for workers. People are already deeply worried about their jobs and health. It’s a disgrace the government is considering forcing them to work longer hours or lose paid holidays....In the midst of the worst economic crisis in three centuries, ministers are preparing to tear up their promises to the British people and taking a sledgehammer to workers’ rights."
The TUC's general secretary, Frances O’Grady, added: "Imagine thinking attacking paid holiday and safe limits on working time is a priority right now."
New Employment Bill
It is anticipated that the new Employment Bill will be introduced later in 2021. However, as of yet, no firm timetable has been set out as to when. Nevertheless, given the Government's denial, it is unlikely that there will be any dilution of workers rights vis-a-vis the Employment Bill.
ETA: Addendum
Since this article was first published, the business secretary, Kwasi Kwarteng, appeared before the Commons Select Committee on Business, Energy and Industrial Strategy on Tuesday, the 19th January 2021. The business secretary said to the committee that whilst his department was consulting with business leaders on EU employment law rules and workers rights, including the working time directive, there would be no significant weakening of workers rights.
The business secretary stated: "I think the view was that we wanted to look at the whole range of issues relating to our EU membership and examine what we wanted to keep.....We are absolutely looking at safeguarding employment rights. I know there’s been stories in the newspapers that there’s going to be some sort of bonfire of rights. This could not be further from the truth......[The Government is determined to retain] a really good high standard for workers in high employment and a high-wage economy. That’s what I’m focusing on. And so the idea that we’re trying to whittle down standards, that’s not at all plausible or true."
In relation to the working time directive, whilst acknowledging that some countries had opted out, the business secretary said: "So, even by just following that we are way above the average European standard. And I want to maintain that, I think we can be a high-wage, high-employment economy and a very successful economy. And that’s what we should be aiming for."
