Workers’ rights bill not referred to government scrutiny watchdog

The government’s regulatory policy committee has criticised it for not submitting the Employment Rights Bill to the watchdog for pre-parliamentary scrutiny.
The independent scrutiny body said that an impact assessment (IA) for the bill, which was introduced to parliament on Wednesday, had not been received.
Government departments are expected to submit an assessment on a new bill to the committee in time for the regulator to publish an opinion before it is presented to parliament.
The regulatory policy committee (RPC) is made up of independent experts from a range of backgrounds and is chaired by the economist Stephen Gibson. It was set up in 2009 to scrutinise the evidence base for regulatory and deregulatory proposals and their cost to business.
In a statement the committee said: “Since this was a manifesto commitment, the Better Regulation Framework urgent measures process allows the Department for Business and Trade to submit an IA for the proposal, rather than an options assessment as normally required.
• The Times view on Labour’s employment rights bill: Pause for Thought
“The Employment Rights Bill was introduced to parliament on October 10, 2024. An IA has yet to be submitted to the RPC for scrutiny.”
The 149-page Employment Rights Bill has been hailed by the government as the biggest overhaul of workers’ rights in decades. Measures set out in the bill include ending “fire and rehire” practices as well as introducing day-one statutory sick pay, parental leave and protection against unfair dismissal.
Most of the reforms will not take effect until 2026 as ministers promise a series of consultations on the details over the next year.
The RPC said after receiving the IA that it would produce its own opinion as soon as possible, which would then be made available to both parliament and government.
The lack of regulatory scrutiny of the bill raises concerns about the extent to which the government has analysed the impact that the bill will have on businesses.
The Federation of Small Businesses said that the reforms were a “rushed job, clumsy, chaotic and poorly planned” that would “jeopardise job creation”. However, reaction from large employers has been more upbeat, with the CBI saying that the government “deserves credit for its willingness to engage with businesses and unions on how to make a success” of the reforms.
Jonathan Reynolds, business secretary, said this week that an impact assessment would be published to parliament alongside the bill.