Best Insurance

Mixed response to government's announcement on employment law(13-May-2011)

The latest announcement by the government of their intention to change the employment laws has received mixed responses. The main unions have been luke warm and very sceptical of the government’s intentions. Most employee organisations seem to be sceptical and view the latest announcements by the government as yet another blow to the employed and some have even gone to the extent of saying that the government has gone back to its old ways of being one sided i.e. supporting the businesses and the employers.

There have been strong statements made by the TUC general secretary Brendan Barber, who said that that the TUC is "very worried" by some of the proposals up for review and added statements such as countless uncapped discrimination claims are just an "urban myth". Barber also claimed that latest proposals of the government to reduce the minimum consultation period for collective redundancy - from 90 days to 30 days is bound to have a negative effect on the unemployment.

The Confederation of British Industry (CBI) on the other hand welcomed the proposals saying that it will help businesses to be more flexible in the changing economic climate and will allow the business to implement any changes, mergers and acquisitions that has an impact on employment in a speedy manner.

While the changes are bound to have a long term impact on the way people look at their employment and protection they have in place for redundancies. In the short term, the unemployment is bound to rise.

Rising inflation costs and slow recovery of the economy is really hurting several businesses in terms of their cash flow. Costs of redundancies have always played a major factor in the decision of businesses when it came to redundancies and this change in legislation will definitely make it easy for companies to lay off people.

Stuart Boseley, Director of Best Insurance said that the government should not act in haste and should look at the whole situation holistically. Rushing any legislation that has not been thought through fully can result in major increase in unemployment which will have little benefit on the employee sentiment and ultimately the performance of the businesses.

Best Insurance is one of UK’s leading provider of redundancy insurance covers. They have a wide range of products that helps to pay for the bills and other payments when people are made redundant. These are flexible monthly policies and people who are proactive and invest in such redundancy protection insurance always tend to fare better when they are made redundant.