CBI: Proper enforcement, not new law, is the answer for vulnerable workers

Responding to the report of the TUC's Commission on Vulnerable Workers, released today, John Cridland, CBI Deputy Director-General, said:

We welcome the report's focus on protecting workers from abuse by a small minority of employers, and a number of the ideas put forward are sensible.

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However, the report fails to distinguish between improved enforcement of existing employment rights, which will have real benefits for vulnerable workers, and more regulation, which will not.

Every worker in the UK is already supported by a strong floor of employment rights, including a National Minimum Wage, entitlement to paid holiday leave and statutory sick pay, and regulations on working time and health and safety.

It is more effective enforcement of these existing rights that would truly help protect vulnerable workers and prevent good employers being undercut by rogue firms. There should be no hiding place for employers who deliberately break the law and exploit staff.

Commenting on specific TUC proposals for new legislation, he said:

More licensing will do nothing to tackle abuse in the few firms where it takes place. Extending the licensing regime to sectors beyond agriculture would impose extra costs and bureaucracy on good employers, yet the evidence to date suggests that it has failed to stamp out rogue agencies.

Equal treatment for agency workers on pay is only appropriate after a significant qualifying period, as the costs of such regulations for short assignments are high and the potential benefits minimal. Firms would be forced to cut back on using temps, to the detriment of workers themselves.

And occupational benefits such as full sick pay or pensions are provided voluntarily by firms to reward the commitment of permanent staff. They are simply not appropriate for agency, casual or seasonal staff.