Eight emerging themes

Eight emerging themes: Regulation and enforcement

REGULATION AND ENFORCEMENT

UK employment laws are relatively new. Unfair dismissal protection was introduced in 1971. The first discrimination law (equal pay) was enacted in 1970 but only came into force in 1975, the same year as the first maternity leave rights. Other discrimination laws followed. The national minimum wage was introduced in 1999.

As individual legal rights have, over the last half century, replaced trade unions in protecting workers (see role of the state – worker rights and politics), employment law has become increasingly complex. Nonetheless, however recent, these laws evolved for a different world from that of today - let alone tomorrow. Employment law now regulates all the drivers of change, for example: use of algorithms (see technology – artificial intelligence); age/race/sex discrimination (see demographics); worker consultation (see sustainability – social concerns); minimum wage (see role of state- state intervention); EU-derived laws (see globalisation – Brexit); visa rules (see – migration); health and safety (see Covid-19 – covid security); and flexible working (see social trends – work/life balance). Tomorrow’s world of work will be one of increased flexibility and automation, requiring a comprehensive review of employment regulation. The role of social partners in developing laws and policies (as often seen in Continental Europe) may grow depending on which political party is in power (see role of the state – politics). Proposals from the Welsh government illustrate a possible way forward.

But it is not just the employment laws which need reviewing. Enforcement mechanisms need to be overhauled (see role of the sate – worker rights). Employment tribunals (ETs - originally known as industrial tribunals) were established in 1964 to hear employer appeals against training levies. Following recommendations from the 1968 Donovan Commission, the plan was that they should become an easily accessible, informal, speedy and inexpensive forum for resolving workplace disputes. This is no longer the case. The ET system was buckling under its increased workload even before Covid-19. Cases can now take well over a year to be heard, some hearings can last week or more, and the complex ones cost tens of thousands in lawyers’ fees. In dismissal cases, the process followed is often more important than the substantive merits of the dismissal. Employment status is complex with different rights arising if the individual is classed as an employee, worker or self-employed - the distinctions are not always clear. Accordingly, access to justice can be prohibitively expensive for many. For employers, the costs can be equally high win or lose. In many cases, reputational issues weigh more heavily than the merits of the claim.

Regulation and enforcement

Employment tribunals

Employment tribunals

Most employment rights in the UK are enforced in employment tribunals intended as an easily accessible; informal; speedy; and inexpensive forum to resolve workplace disputes. As employment law has become more complex, these tribunals have become inaccessible, slow and prohibitively expensive for all but the simplest of cases. Time for a re-think.

Employment law

Employment law

New employment laws are being introduced every year and now regulate all the drivers of change. The way in which employment law regulates an increasingly flexible and automated world of work needs to be reviewed. 

Flexicurity

Flexicurity

Originally coined in Denmark, flexicurity has long been seen in the EU as the holy grail of flexible labour markets, namely, an active labour market strategy and adequate social security. As part of any review of the way employment is regulated, these objectives need to be considered.

Social partners

Union membership in the UK had declined since the early 80s, stabilising around five years ago, and predominating in the public sector. The future role of trade unions promises to evolve in the years ahead – particularly with left wing or green parties in power. Attention to the role of social partners in developing laws and policies is likely to grow.

Part 1 

DRIVERS OF CHANGE

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Part 2 

EMERGING THEMES

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Part 3 

PREDICTIONS

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