In the midst of a number of controversial strikes across the country, the Government has laid before Parliament legislation to amend and revoke certain industrial action provisions which they say will create a fairer balance between the right to strike but the employer's need to operate.

The Liability of Trade Unions in Proceedings in Tort (Increase of Limits on Damages) Order 2022 (SI 2022/699) (Order) and draft Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 (Regulations) were laid before Parliament this week. 
 
The Order amends section 22(2) of the Trade Union and Labour Relations (Consolidation) Act 1992 by increasing the limits on the maximum damages which may be awarded against a trade union where industrial action is found to be unlawful. With effect from 21 July 2022, the limits are increased as follows:
 
• Less than 5,000 members: £40,000 (currently £10,000).
• 5,000 to 24,999 members: £200,000 (currently £50,000).
• 25,000 to 99,999 members: £500,000 (currently £125,000).
• 100,000 members or more: £1,000,000 (currently £250,000).

The explanatory note accompanying the Order states that the increases take into account changes in the retail prices index which have occurred since the maximum amounts were set in the Employment Act 1982 and therefore seeks to suggest the increases are simply due:  of course the Trade Union perspective is that the financial risks for them in calling for a strike have quite deliberately been multiplied by four.  
 
The Regulations, if approved, will revoke regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (SI 2003/3319). Regulation 7 prevents an employment business from supplying an employer with temporary workers to perform duties normally performed by a worker who is on strike or taking industrial action, or the duties normally performed by any other worker who has been assigned to cover a striking worker.    

If the Regulations come into force, this restriction will disappear and employers will no longer be prevented from engaging temporary workers directly when industrial action is taking place.  This has often been seen as a fundamentally necessary restriction by the Trade Union side, who argue that without it many employers could longer absorb the disruption caused by striking employees.  Of course, on the employer side, the ability to mitigate the impact of a strike by calling in agency workers will be hugely attractive in some cases (though of course in many sectors it is not possible in any event).  

The Regulations are subject to the draft affirmative procedure and require the approval of both Houses of Parliament. They will come into force the day after they are made.