George Osborne signals weaker job laws

The Chancellor signalled further reforms of employment law, including regulations covering the pay and conditions of workers when they switch from the public to the private sector.

George Osborne announced he will call for evidence on further measures to make it easier to hire people, including changing the so-called Tupe regulations, which unions argue are vital to ensure that workers do not suffer cuts to pay or worse conditions when their jobs move to private firms.

The Chancellor said he also wanted to reduce "delay and uncertainty" in the collective redundancy process as well as introducing the idea of "compensated no-fault dismissal" for firms with fewer than 10 employees.

"We will cut the burden of health and safety rules on small firms because we have a regard for the health and safety of the British economy too," he said.

"This Government has introduced flexible working practices and we are committed to fair rights for employees. But what about the right to get a job in the first place?

"Or the right to work all hours running a small business and not be sued out of existence by the costs of an employment tribunal?"

Mr Osborne said many firms were afraid to hire new staff because of their fear about the costs involved it if did not work out.

PA