DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/123)
issued by The Government News Network on 7 December 2007
The Government
today published the Employment Bill, aimed at toughening penalties
for rogue employers and affording greater protection for agency
workers. It would boost powers for employment agency inspectors
and simplify dispute resolution procedures.
The Bill has two key elements aimed at improving the
effectiveness of employment law to benefit employers, trade
unions, employees and the public sector.
Tough new penalties would be introduced for businesses not paying
workers the minimum wage and agencies which try to exploit workers
and undercut legitimate businesses.
Changes to the dispute resolution system would lighten the
regulatory burden on business and encourage more workplace
disputes to be resolved earlier and informally.
Employment Relations Minister Pat McFadden, said:
"The National Minimum Wage was a key right this Government
introduced to ensure workers were paid fairly. These changes would
make sure everyone who is caught not paying their workers will be
punished, with the potential for unlimited fines.
"No business should be allowed to get away with unfairly
undercutting legitimate operators by exploiting workers.
"Our proposed changes to dispute resolution, responding to
the Gibbons Review, would ease burdens for businesses and
employees by abolishing rigid, statutory processes for dispute
resolution, while also ensuring there is no discrimination in
employees' rights."
Notes to Editors
1. The Bill would:
* Toughen up penalties for those who break the law, increasing
the maximum penalty for underpayment of the national minimum wage
or employment agency offences from a £5,000 fine to an unlimited
fine. The most serious cases of non-compliance will be tried in a
Crown Court, which will have the power to impose an effectively
unlimited penalty.
* A fairer method for dealing with national minimum wage arrears,
calculated so that workers do not lose out as a result of underpayment.
* Strengthening the investigative powers of the Employment Agency
Standards Inspectorate, allowing them greater scope to access
financial information to help them check whether a worker's
complaint is an isolated instance, or an example of widespread abuse.
* Respond to the Gibbons Review of dispute resolution by
repealing the current statutory dispute resolution procedures.
This forms part of a wider programme of work following the Gibbons
review, which aims to help resolve disputes at an earlier stage
and improve the way employment tribunals work. Acas will be
revising its statutory Code on discipline and grievance
procedures. The Bill provides that tribunals will be able to
adjust awards where parties have unreasonably failed to follow the Code.
* Make changes to ensure compliance with the European Court of
Human Rights (ECHR) judgement in Aslef v UK, and clearer rights
for trade unions to determine their membership.
2. Existing legislation in this area is:
* Employment Relations Act 2004
* Employment Act 2002
* (Dispute Resolution) Regulations 2004
* National Minimum Wage Act 1998
* Employment Agencies Act 1973