Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee relationsEmployment lawEconomics, government & businessIndustrial action / strikesLabour market

Employment legislation: Are the UK’s labour laws too weak?

by Personnel Today 25 Apr 2006
by Personnel Today 25 Apr 2006

A fierce debate is raging about the state of the UK’s labour laws in the wake of Peugeot’s decision to close its Coventry factory.

The French car manufacturer is cutting 2,300 jobs as it withdraws from the UK to focus production in mainland Europe.

Unions have claimed that the Coventry plant was targeted for closure because it is easier to make workers redundant in the than it is in France. They insist that the government must tighten employment legislation to protect jobs.

But manufacturers have hit back – arguing that the weak labour laws create jobs by encouraging multinational firms to set up in the UK.

One thing both sides appear to agree on is that it is easier to get rid of staff  on this side of the Channel.
 
Felicity Gemson, European professional support lawyer at Allen & Overy, told Personneltoday.com: “French collective dismissal procedures are stricter than the UK’s. For example, if more than 100 people are being made redundant in France, a minimum consultation timetable of six months is realistic. In the UK, consultation could take just 90 days.

“And if procedures are not complied with in France, dismissals may be ineffective. In the UK, the employer will pay a capped level of compensation.”

Trade union Amicus claimed these laws show that jobs are cheap in the UK.

“Job protection similar to that enjoyed by workers in France would give British employees the opportunity to compete for investment,” said the union’s general secretary, Derek Simpson.

But manufacturers’ trade body EEF said the weak laws create jobs, rather than threaten them.

“Remember, there is 10% unemployment in France,” said a spokesman. “We do well for foreign investment in the UK because of the flexible laws. That is why the Japanese car makers are here.

“We could have the best-protected workforce in the country, but have 25% unemployment.”

The EEF insisted that labour laws had no impact on Peugeot’s decision to shut its Coventry plant.

“There were a number of reasons behind the decision. It is an old facility which would have required a lot of investment; it is outside the manufacturer’s native country; and also it is the furthest plant from the growing markets in Eastern Europe,” the spokesman said.

But unions are not convinced that labour laws are working in the UK’s favour.

“We keep being told that the UK is an attractive base, but the manufacturing sector is imploding,” said a spokesman for the Transport and General Workers’ union.

“We insist on protection of workers. We want it to become law for a firm to notify unions as soon as it considers closing a site down. We believe Peugeot had been planning to close the Coventry plant for two years.”

The T&G refused to rule out strike action to fight Peugeot’s decision.

Socialist Coventry councillor Dave Nellist said: “I hope union members will take inspiration from how French workers have dealt with plans to make it easier to sack young workers, and decide on a robust response.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“Our city and region have lost thousands upon thousands of manufacturing jobs in recent years. Weak employment laws make it easier to sack people in this country than elsewhere. The unions must force the government to act now to stop this industrial vandalism.”

Of course, industrial action to change the weak labour laws is made difficult by the laws themselves – while the right to strike is guaranteed in the French constitution, there is no automatic right to strike in the UK.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Could you be the next HR leader of the NHS?
next post
A third of Eastern Europe’s migrant workers are UK managers

You may also like

Company director wins £15k after being told to...

4 Jul 2025

Skills shortfall in construction threatens housing target

4 Jul 2025

MPs demand Home Office tightens visas to protect...

4 Jul 2025

How can HR prepare for changes to the...

3 Jul 2025

Government publishes ‘roadmap’ for Employment Rights Bill

2 Jul 2025

Fall in entry-level jobs linked to rise of...

30 Jun 2025

Employers’ duty of care: keeping workers safe in...

27 Jun 2025

Welfare cuts would ‘undermine workforce inclusion and business...

27 Jun 2025

Bank of England says NIC rise is dampening...

27 Jun 2025

Bioethanol plant closure could lead to 4,000 job...

26 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+