The Business, Energy and Industrial Strategy Committee in the House of Commons has called for an Employment Bill to be included in the King's Speech.
No date has yet been set for King Charles III's maiden King's Speech. It was announced last December that the speech would be delayed until autumn 2023.
Employment Bill
It had been anticipated that an Employment Bill would be included in the 2022 Queen's Speech, but ultimately none materialised. A commitment to produce one had been included in the 2019 Queens Speech.
However, speaking before the House of Commons Business, Energy and Industrial Strategy Committee on the 13th December 2022, the Secretary of State for Business, Energy and Industrial Strategy, Grant Shapps, confirmed that the Employment Bill itself had now been effectively shelved, as it was not “on the cards”.
Since then, some MP’s have brought forward Private Members Bills in an attempt to bring elements of the now likely defunct Employment Bill into force. Full details of these Bills are in included in our most recent update on the 2023 employment law changes.
Committee Report
In a new report entitled, 'Post-Pandemic Economic Growth: UK Labour Markets', the Business, Energy and Industrial Strategy Committee expressed concern in relation to the different levels of employment rights and protections afforded to those in full and part-time employment, those who work flexibly, and the self-employed / freelancers, and that this is having an adverse impact upon economic activity.
The Committee called for a new Employment Bill to be included in the King's Speech, stating: "We call on the Government to reconsider the need for an Employment Bill in the upcoming King’s Speech so that legislation can be brought forward to, among other things, create new, more flexible constructions of work that include appropriate rights and protections for workers."
When an Employment Bill was originally raised, it had been anticipated that the establishment of a new single enforcement body for employment rights would be included. This would be a new single all-encompassing enforcement body, which would replace, merge together, and extend the enforcement powers of the HMRC National Minimum Wage Enforcement, the Gangmasters and Labour Abuse Authority, and of the Employment Agency Standards Inspectorate.
However, when Grant Shapps announced on the 13th December 2022 that the Employment Bill had been shelved, he also confirmed at the same time that the proposed single enforcement body had also likely been shelved as well. He stated: "We’ve spent two years plus of this parliament fighting Covid. It may well be with two years left to go that we’re still able to address some of that. But what we’re more interested in is making sure that the bodies that are already there are operating effectively."
Nevertheless, the Business, Energy and Industrial Strategy Committee stated in their report that there was an urgent requirement for a single enforcement body as "we believe that a single organisation would provide clarity for those most in need and would offer benefits in sharing of information."
Reaction
Commenting upon the Committee's report, the chair of the Committee, Darren Jones, stated: "Our shrinking and aging UK labour market, and the lack of political leadership of this issue, is holding back economic growth. What we have now is outdated and static while working practices move on. Rethinking the legal framework and protections around new types of more flexible working through an Employment Bill would open up work opportunities to many people who want to be economically active but currently aren’t. We won’t be able to move the dial on economic growth in our country until we invest in, support and make the most of the potential of every worker across the UK."
Jones added: "Weak or absent enforcement means workers can be exposed to exploitative practices without any consequence, rendering their rights worthless. Regulatory bodies are doing the best they can with what they have but the Government really must get a move on and create the single enforcement body promised back in 2019. A one stop shop for workers and businesses would provide the clarity, security and effective oversight that is needed."
