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Western Europe is a very inflexible labour environment.


Vance Kearney European VP, Human Resources, Oracle. ”


Embedding this new world of employment in government thinking


Ensuring the UK competes in the global economy


This report has shown how the recession highlighted the benefits that the UK’s flexible labour market and employment relationships can bring to businesses and staff and has explored why situation this came about and how it works for employees and employers.


As the economy continues its recovery, we must harness the benefits of this new employment relationship, with its employee choice and company flexibility. Engagement can improve UK performance in the globalized economy.


In practice, this requires a government commitment to ensure that their interventions in the labour market encourage rather than discourage communication and flexibility. This does not mean sweeping away existing protection. Not everyone in our labour market is a highly-skilled knowledge worker. There are areas where the law is an essential tool to protect employees, and businesses realise that. The question is one


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of balance – under which circumstances is the law an appropriate tool, as opposed to other, more flexible approaches.


Changing our approach


At the moment, most government action in the labour market is law-based. Yet the process of doing things “by the book” on almost every issue hinders communication, rather than enhancing it. Where possible, in both new initiatives and as it conducts the employment law review, government should look to withdraw in areas where a more flexible approach – perhaps guidance, or a code of practice – would be possible.


This is an approach that will enhance workplace relationships and flexibility, boosting engagement and performance. The law should be used only where a strong argument that only the law could be effective is set out.


There is room to make such a change. Over the past three decades the volume of employment legislation has swollen by 502% – a strong base of rights has been established. “HR has changed from a role of looking after employees and exercising


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