06-03-2025
Taxpayers will foot bill for employment disputes under Rayner's workers' rights plan
Ms Rayner has already been accused of imposing additional costs of £5 billion a year on Britain's businesses with her expansive workers' rights plans, which will also make it easier for employees to strike.
The plans reduce the proportion of workers who must be a member of a trade union in order to run a strike, and the proportion of unionised workers who must vote in favour of industrial action.
The latest amendments were tabled by the Government on Wednesday, and had not previously been announced by ministers – effectively smuggling them into legislation under consideration by MPs.
One amendment will give workers the right to claim 'civil legal aid' to fight employment disputes. Currently, the government will only support some claims of discrimination and HMRC can take action over failure to pay the minimum wage.
The bill would also give the Government the power to take on employers directly, even if the workers affected by the dispute have decided not to take legal action.
Ministers would then claw back the cost of legal support, including representation at a tribunal, from compensation paid by bosses to their workers.
New rules 'really scary' for businesses
Craig Beaumont, executive director at the Federation of Small Businesses, said the new rules were 'really scary' for businesses and could lead to an increase in vexatious claims that can take two years to fight.
'This makes the funnel bigger for new cases, by allowing the government to take out or continue legal action against employers or give legal aid to claimants,' he said.
'It's really scary for small businesses. The idea is that a vexatious claim could come their way and they could wait two years from that point before it is cleared.'
Mr Beaumont said some business owners would feel under pressure to settle claims to avoid years of uncertainty and legal bills.
'If you don't, you might have spent £30,000 on legal fees, which is money that you can't spend employing someone,' he said.
Any action against employers would be brought by the government's new Fair Work Agency, and is designed to help employees who cannot afford lawyers or are concerned about recriminations from their bosses for suing the company.
The plans come after His Majesty's Courts and Tribunal Service revealed in October the number of outstanding tribunals stood at 44,000 in England and Wales.
The number of new cases increased by 18 per cent in the previous year, while the number of cleared cases was down four per cent.
Business leaders have spoken out against the workers' rights plans, which previously included employees' 'right to switch off' and avoid contact with bosses when not working.
The plans were dropped when the bill was presented to Parliament last year.
A Government spokesman said: 'Our Plan to Make Work Pay is a core part of our mission to grow the economy, raise living standards across the country and create opportunities for all.
'This pro-business, pro-worker Government continues to engage extensively with businesses and unions, including on the set up of the Fair Work Agency.'
