Following his meeting with members of the Rugby Chamber of Commerce, Rugby MP Mark Pawsey raised a question on small businesses during Business, Innovation and Skills Questions in the House of Commons Chamber yesterday.
Addressing remarks made to him by local business leaders, Mark asked of Edward Davey, the Parliamentary Under-Secretary of State for Business, Innovation and Skills:
“What steps his Department is taking to make it easier for small businesses to recruit staff?”
Mr Davey replied:
“The Government are reviewing employment laws to provide the flexibility that businesses need and support economic growth. As part of this, we recently launched a consultation on employment tribunal reform and the employer's charter, both aimed at increasing business confidence to take on, and manage, staff.”
Mark then added:
“On Friday I met business leaders in my constituency, Rugby, who told me that the matter of greatest concern to them is that too many work force disputes, often without foundation, are taken to the employment tribunal. Fear of such action is acting as a deterrent to employment. Can the Minister update us on when the new proposals will come into effect?”
Mr Davey’s reply to this was:
“As the hon. Gentleman knows, we recently published the consultation, "Resolving workplace disputes". I urge him to ask businesses in his constituency to respond to that consultation because we want to ensure that the current system, which I believe is bad for employers and employees, is reformed.”
Following his exchange with the Minister, Mark said:
“It’s good news that the Government are looking into this issue. Of course it is appropriate that the right form of redress is taken if a member of staff is not treated correctly, however, the methods currently used encourage the use of employment tribunal when it is not always necessary.”
He concluded:
“I hope that those in business will take the advice of the Minister and make their own representations in respect of the consultation ‘Resolving Workplace Disputes’. This is a chance for them to have their say in any reforms that will take place.”