The Times quotes Nick Hurley on potential issues with the Employment Rights Bill

According to an article by The Times, millions of pounds of taxpayers’ money could be spent on suing businesses on behalf of trade unions under Labour’s reforms of workers’ rights.

Ministers hav reportedly admitted that they do not know how much the new powers, which would allow the government to take bosses to court on an employees’ behalf, will cost. New information arose earlier this month suggesting that the measures will extend to support for trade unions as well as individual workers.

Under the new Employment Rights Bill, new enforcement body the Fair Work Agency (FWA) would be able to step in where workers don't or can't bring a legal claim, where ministers believe there is a case to answer. The body would also be able to give support and advice, including legal representation, to those who do bring claims against their employers. Ministers have now clarified that legal challenges could be brought on behalf of trade unions too.

Commenting on this new development and the Bill, Nick Hurley, Partner and Head of Employment, comments in the article. Nick explains that the “drama” surrounding the bill is “unsurprising as it seeks to permit the FWA to pursue claims seemingly without the knowledge or consent of the litigant”. He adds:

More controversially the litigant person could be a trade union and one has to query why taxpayers should be expected to foot the legal bills for actions that trade unions, funded by member subs and donations, could bring themselves.

Nick continues by explaining that said comparisons with costs at the Equality and Human Rights Commission (EHRC) — where £1.2 million was spent in the past five years — was like “comparing apples with pears”, with the costs to the FWA likely to be into the higher millions.

Legal aid costs the taxpayer £2 billion annually and litigation is anything but cheap in any forum. Most taxpayers will not welcome this spend and many employers will regard this as overreach of the worst kind.

Read the full article in The Times here (subscription required).