FPB gives cautious welcome to UK Governmentís response to EU labour law paper

The Forum of Private Business (FPB) has extended a cautious welcome to the UK Governmentís response to an EU green paper on labour law, which rejects any need for further EU-level legislation. The green paper is aimed at initiating a debate on the treatment under EU law of self-employed workers; agency workers; freelancers; contractors; and the collection of other types of workers not on standard employment contracts, known as ínon-standard workersí.

The FPB, which represents 25,000 small and medium-sized UK businesses, has been lobbying for some time to prevent the green paper being used as a pretext for further employment regulation that would be costly for smaller firms. The FPBís EU spokesperson, Martin Smith, welcomed the Governmentís response:

It is good to see common sense prevailing in the UKís response, he said. Our research shows that employment regulation is already too burdensome for smaller firms, and research by the Organisation of Economic Cooperation and Development (OECD) corroborates the fact that rigid labour markets are holding back economic growth in Europe.

Even the organisations that represent these types of workers are trying to stop any new legislation, he added.

But Mr Smith cautioned that the Government now had to follow up on its position and persuade other member states to act against attempts to tie the European economy up in more red tape.

They have to stand up and defend flexibility, and not be tempted into any botched compromises, as it seemed they were considering with the Working Time Directive, he said.

Then the European Commission actually has to take notice and not keep looking for a case for regulation where none exists, he added.

The burden of domestic employment legislation was, said Mr Smith, a related issue that the Government should not ignore.

Our research shows that complying with employment law is one of the major headaches faced by smaller firms. Whilst the EU has a lot to answer for there, so does the Government. Even if they get their way this time in Europe, the Government should not ignore the burden of regulation they themselves have produced, he concluded.