The government claims to have generated -£16.44 million savings to business in the first year of its “one-in, on-out” policy designed to cut red tape.

Its report “One-in, One-out: Third Statement of New Regulation”, also maintains that Employment Tribunal reforms will deliver benefits to employers of over £40 million a year.

The one-in, one-out rule, introduced in September 2010 (see LELR 181), requires ministers who want to introduce new Regulations that impose costs on a business or the third sector, to first identify current Regulations with an equivalent value that can be removed. This, the report states, has capped the cost of new burdens on business over the first half of 2012, “with the burden remaining at, or close to zero”.

Business and Enterprise minister Mark Prisk says the government intends to “reduce the volume and impact of EU Regulation”. His report boasts that the government has secured a commitment from Europe that reverses the burden of proof to facilitate the exemption of micro-businesses (those with 10 or fewer employees) from the scope of future EU legislation, or that they be subject to lighter treatment when they are covered.

This is in addition to the moratorium that the government announced for micro-businesses in its 2011 budget, which exempted them from new domestic legislation for three years from that date.

The report also confirms that the proposals in last year’s Modern Workplaces consultation - which are not likely to be implemented before April 2014 - will reflect this moratorium. This consultation looked at issues around flexible parental leave, flexible working, Working Time Regulations and equal pay.

The One-in, One-Out report also announces that statements of employment particulars under section one of the Employment Rights Act 1996 will now be linked to the requirement for an Apprenticeship Agreement under the Apprenticeship, Skills, Children and Learning.

The report provides an overview table of other changes already announced, including an increase in the qualifying period for unfair dismissal from one year to two from 6 April 2012 and that Tribunal judges will sit alone from that date to hear unfair dismissal cases.

Click the link to access the full report - One-in, One-out: Third Statement of New Regulation (pdf 480 KB).

Click the link to read the report on Modern Workplaces consultation on the Department for Business Innovation & Skills website.