Time to train: proposed legislation for 2010

IoD comment:

The IoD shares the Government's ambition that the UK should become a world leader in skills. Skills are a key driver of productivity and are vital to the nation's future prosperity. It is absolutely right that efforts to improve the country's skills profile remain a top priority and a key focus for Government. However, the IoD profoundly disagrees with the regulatory approach the Government is taking to achieve its skills goals. The new right for employees to request time off to undertake training is an unnecessary, poorly thought-through and damaging policy. The expectation that the legislation will drive culture change is optimistic. There will also be an inevitable administrative impact on employers which is unhelpful in the current climate.

Although IoD pressure helped to win the concession of a one year exemption for SMEs, the IoD believes this does not go far enough and will press for further changes to the law and for the exemption to be made permanent.

What the proposal will mean for your business:

The Government's response on how the new legislation will work.

What rights will my staff have?

The proposals will give employees the right to request time to do relevant training. Employers will need to give these requests serious consideration.

When will the new rights be introduced?

The proposals are included in Government legislation that will be considered by Parliament. Provided that the legislation is passed, the new proposals will come into force in 2010.

Will I have to agree to all requests?

No. The proposed new right will be a right to request time to train. Employers will not have to agree to every request as long as there is a good business reason not to do so. The Government will provide advice on what those reasons could be.

For instance, in broad terms employers will not have to agree to a request if they think the training will not improve business performance.

Will the same rules apply to all firms, whatever their size?

Yes. However, if you are a small firm it is likely you will have more good business reasons not to do so.

What benefits does this have for businesses?

Research shows that firms that don't train are two and a half times as likely to fail than those that do. The proposals follow what the best employers are already doing and will help encourage others to follow that example.

Would I have to pay for training?

This legislation will not force you to pay for training - but obviously most businesses will choose to do so if it is related to what the business does. The Government has recently increased the funding available for some training and employers can get advice on this from their local Train to Gain broker or their local training provider.

Is there funding to cover the wage costs of someone who is on a training course?

There is some Government help for businesses with fewer than 50 employees. They can receive a wage subsidy when releasing eligible employees for training through the Government's training programme 'Train to Gain'. You can get further advice on this from http://www.traintogain.gov.uk. Further advice on how to access funding is available from a Train to Gain broker and training providers.

How will I know if the training will help my business?

Employees will have to be clear what training they want to do and how it will help the business. Employers will be in the best place to judge if this is true and following a discussion with the employee, make a judgement on whether they should agree to the request or not.

Can staff only ask to do training that can help my business?

Yes. Employees should request training that will make them better at their jobs and therefore improve business performance

How often can staff ask to have time to train?

An employee can only expect their employer to consider a request once in any 12 month period under these provisions. But there is nothing stopping employees or employers discussing training needs informally at any time.

If I don't give them training can I be taken to an Employment Tribunal?

An employee who wants to challenge a decision will first have to appeal against a decision to the employer and then following that if there are still problems may complain to an Employment Tribunal. But complaints to a Tribunal may only be allowed if the employer has failed to properly consider a request.

What other help can I get from Government?

Businesses who grant training requests may be eligible for support to help with costs through the Government's training programme 'Train to Gain'. Information on what your staff may be entitled to is available from http://www.traintogain.gov.uk.