Business Leaders Warn of Job Cuts Under Labour’s Employment Rights Bill

Britain’s proposed Employment Rights Bill by Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds is not well received by small business executives. The legislation will change the dynamics of worker rights through the scrapping of zero-hour contracts, the provision of flexible working, and the provision of SSP from the first day of illness. Although these measures are intended to build the workforce, small firms say they will result in dismissals derailing the economic rebound.

Small Businesses Sound the Alarm

A poll commissioned by the Federation of Small Businesses (FSB) shows that 92% of small employers have concerns about the bill. Most want to either freeze recruitment or cut back on their business activities. More so, 67% expect to hire fewer employees in the future, and 56% expect to halt or reduce their expansion plans in the future. According to Tina McKenzie, FSB’s Policy Chair, the modifications will not encourage small employers to increase hiring. As such, the economy is not ready for a ‘war on work’.

One of the issues is an increase in the scope of the so-called unfair dismissal laws under which employees can bring tribunal actions from their start in a given company. Employers feel that this can lead to more legal problems because they will be reluctant to hire workers with little or sporadic employment records.

Government Defends Pro-Worker Reforms

In supporting the bill, a government spokesperson has noted that the bill is designed to take a mid-line between, pro-business and pro-labor agendas. “Sometimes this has been forgotten and the Employment Rights Bill remains critical in expanding the economy and increasing quality of life,” they said. However, critics have said the measures benefit only unions at the expense of entrepreneurs. Shadow Business Secretary Andrew Griffith said, “Labour’s regulation and taxes will cost more people their jobs and reduce their pay.”

Nevertheless, the government stays loyal to the development of opportunities for business growth, as well as the protection of the worker’s rights and their safety.

Also Read | 6 Workers Killed in Explosion at Fireworks Unit in Virudhunagar, Tamil Nadu