Enterprise and Regulatory Reform Act 2013: Impact on Businesses and Employees

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Palace of Westminster and Big Ben, London, England
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The Enterprise and Regulatory Reform Act 2013 was a significant piece of legislation that aimed to boost economic growth and improve competitiveness in the UK. It introduced various reforms to reduce bureaucratic burdens on businesses.

One of the key reforms was the abolition of the 'green tick' scheme, which allowed companies to display a 'green tick' logo if they had met certain environmental standards. This reform was aimed at reducing the administrative burden on businesses.

The Act also introduced changes to employment law, including the abolition of the Agricultural Wages Board, which set minimum wages for agricultural workers. This change was intended to give employers more flexibility in setting wages.

The Act also included provisions to improve the efficiency of public services, including the creation of a new Office for Productivity and Efficiency.

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Competition and Mergers

The Enterprise and Regulatory Reform Act 2013 made significant changes to the way competition and mergers are handled in the UK.

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A major feature of the act was the merger of the Office of Fair Trading (OFT) and Competition Commission to form a single Competition and Markets Authority (CMA).

The CMA is now responsible for both "Phase 1" and "Phase 2" investigations, allowing greater synergy between the two.

This change enables the CMA to take on a more comprehensive approach to competition cases.

The ERRA also strengthened the criminal penalties for cartel behaviour by removing the requirement that such behaviour be dishonest.

Prosecutors can now show that an individual knowingly participated in a criminal cartel agreement and that relevant information was not disclosed to customers.

The CMA took on the role of primary enforcer for competition cases, with the Serious Fraud Office also able to take action alongside the CMA.

The previous merger control regime remained in place, but the CMA's powers were extended to allow it to require merging businesses to operate independently until its review process had been completed.

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Employers' Liability

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The Enterprise and Regulatory Reform Act 2013 made significant changes to employers' liability. Section 69 of the Act amends section 47 of the Health and Safety at Work Act 1947.

This amendment means that for accidents occurring on or after 1 October 2013, there is no civil liability for breach of health and safety regulations made under the Act.

Employers' Liability

Employers' liability is a crucial aspect of workplace safety.

The Enterprise and Regulatory Reform Act 2013 made significant changes to employers' liability.

Section 69 of this act amended section 47 of the Health and Safety at Work Act 1947.

This amendment means that for accidents occurring on or after 1 October 2013, there is no civil liability for breach of health and safety regulations made under the Act.

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Two Tier System

The two tier system in employers' liability is a complex issue. An employee of an 'emanation of the state', such as a local authority, only needs to show a breach of a relevant European Directive to establish liability against their employer.

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This is not the case for workers outside of the public sector. They will need to prove that their employer was negligent in order to establish liability.

Depending on who the claimant's employer is, the same breach can result in two very different outcomes. This creates a two tier legal system, where the same rules do not apply to everyone.

A key difference is that employees of public sector employers only need to show a breach of European Directive, whereas private sector employees need to prove negligence.

It will be interesting to see how this oddity is dealt with in the UK courts.

Background to Section 69

The Enterprise and Regulatory Reform Act 2013 made significant changes to the Health and Safety at Work Act 1974, specifically with Section 69.

This change was a result of a 2011 government review of health and safety regulation, led by Professor Löfstedt.

The review recommended replacing strict liability with "reasonably practicable", a concept that has been welcomed by many industry health and safety professionals.

The removal of civil liability for breaching the HSWA was a key aspect of this change.

This shift is a significant step forward in the regulation of health and safety, and it's likely to have a positive impact on businesses and industries.

Impact and Effect

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Impact Assessments are a crucial part of the UK Government's regulatory process, accompanying all interventions that affect the private sector, civil society organisations, and public services. They provide a clear understanding of the government's proposals, including the main options considered and the estimated costs and benefits.

Impact Assessments typically include four key elements: the reason for government intervention, the main options being considered, how new policies will impact on individuals or organisations, and the estimated costs and benefits of proposed measures. This information allows those with an interest in the policy area to make informed decisions and understand the potential effects of the government's proposals.

The Enterprise and Regulatory Reform Act 2013 likely involves Impact Assessments, which provide a structured approach to evaluating the potential impact of government interventions.

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Will Claims Be Harder?

The change doesn't take away the right to bring a claim. It's still possible to hold employers accountable for negligence.

Professional meeting in a modern office setting, showcasing business collaboration and communication.
Credit: pexels.com, Professional meeting in a modern office setting, showcasing business collaboration and communication.

The employer will still need to show an adequate health and safety regime exists. This is a crucial aspect to consider.

The process might become more complex due to an increased reliance on expert evidence. This could lead to more detailed and technical pleadings.

Employers won't have a free pass to avoid liability. They'll still need to demonstrate their health and safety regime is adequate.

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Impact Assessments

Impact Assessments are a crucial part of the UK Government's decision-making process, especially when it comes to regulatory interventions that affect the private sector, civil society organisations, and public services.

They accompany all UK Government interventions of a regulatory nature, regardless of whether the regulation originates from a domestic or international source.

An Impact Assessment is essentially a tool that allows those with an interest in the policy area to understand the government's proposal, the main options being considered, and which one is preferred.

The assessment also helps individuals understand how and to what extent new policies may impact on them.

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The estimated costs and benefits of proposed measures are also included in the assessment.

Here are the key components of an Impact Assessment:

  • Why the government is proposing to intervene;
  • The main options the government is considering, and which one is preferred;
  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.

How Courts Have Interpreted ERRA

Courts have been busy interpreting the Enterprise and Regulatory Reform Act 2013, and their decisions have shed light on its provisions.

The Act's provision to exclude certain types of claims from the scope of the Enterprise and Regulatory Reform Act 2013 has been a key area of interpretation.

The courts have held that the exclusion applies to claims for personal injury or death arising out of the activities of a person at work, as well as to claims for damage to or loss of property.

The Supreme Court has also clarified that the exclusion does not apply to claims for breach of statutory duty.

The courts have consistently held that the Act does not abolish the concept of vicarious liability.

In R (on the application of Cornerstone Telecommunications Infrastructure Ltd) v Bristol City Council [2019] UKSC 10, the Supreme Court ruled that the Act does not prevent a local authority from imposing a liability on a company to pay for the cost of installing fibre-optic cables.

The courts have also considered the Act's provision regarding the power of the Secretary of State to make regulations, and have held that the Secretary of State's power is not limited to making regulations that are purely procedural in nature.

Rosalie O'Reilly

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Rosalie O'Reilly is a skilled writer with a passion for crafting informative and engaging content. She has honed her expertise in a range of article categories, including Financial Performance Metrics, where she has established herself as a knowledgeable and reliable source. Rosalie's writing style is characterized by clarity, precision, and a deep understanding of complex topics.

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