Regulatory Policy Committee (RPC) rates Employment Rights Bill impact assessments ‘not fit for purpose’

The impact assessments concerning Labour’s Employment Rights Bill have been judged ‘not fit for purpose’ according to a formal assessment by a leading government body.

The Regulatory Policy Committee (RPC) has assessed as ‘not fit for purpose’ eight of the 23 individual Impact Assessments;  six of these are in the ‘highest impact’ measure category in the summary IA. In their introduction to the report, the RPC say:

“The Employment Rights Bill makes provision: to amend the law relating to employment rights; about procedure for handling redundancies; about the treatment of workers involved in the supply of services under certain public contracts; for duties to be imposed on employers in relation to equality; about trade unions, industrial action, employers’ associations; about the enforcement of legislation relating to the labour market.

The Bill’s proposals are set out in a summary IA, and individually in 23 further IAs on specific measures. The RPC has assessed as ‘not fit for purpose’ eight of the 23 individual IAs; six of these are in the ‘highest impact’ measure category in the summary IA. The overall assessment for the IA is, therefore, ‘not fit for purpose’. Given the number and reach of the proposals, it would be proportionate for the IA to include labour market and broader macro-economic analysis to understand the overall impact on employment, wages and output, and particularly the pass-through of employer costs to employees and other dynamic impacts. Eight individual IAs and the summary IA need to provide further analysis and evidence in relation to the rationale for intervention, identification of options (including impacts on small and micro-businesses) and/or justification of the chosen way forward. The issues are summarised in the main body of the opinion and are provided in detail at its Annex A.”

You can read the RPC’s report here.