The Government has announced new areas that it will consider reforming as part of its review of employment red tape - including collective redundancy consultation periods, the Transfer Undertakings Protection of Employment Regulations (TUPE) and compensation for discrimination awarded by employment tribunals.

The ongoing review is an important part of the Government's plans to deliver growth by breaking down barriers, boosting opportunities and creating the right conditions for businesses to start up and thrive.

The Chancellor of the Exchequer, George Osborne, will encourage businesses to make their voices heard on the issues which matter to them, including employment law, in his speech to the Institute of Directors Annual Convention.

The Chancellor said: “If we are to support private sector growth and create jobs, we can’t shy away from looking at difficult issues like employment law. Examining these areas of the law which could be holding back job creation demonstrates the Government’s commitment to go for growth.”

The Government wants to ensure that the regulations are fit for purpose, and legislation will not necessarily be the route to implement any change if there is a case for reform.

As part of the review of employment law consultations have recently closed on simplifying the Employment Tribunal system and extending the period before an unfair dismissal claim can be brought. An independent review of the system for managing sickness absence has been commissioned and a review of the compliance and enforcement regimes for employment law has been launched.

The Government believes that a flexible labour market is not simply about making life easy for employers. It is also determined to help people who want to work. Next week it will launch a consultation on plans to extend the right to request flexible working to all employees and introduce a new system of shared parental leave from 2015 - to make it easier for parents to work whilst bringing up a family.

(BMcN/GK)