The British Chambers of Commerce and five major business groups urge the government to reconsider its Employment Rights Bill, warning that guaranteeing workers fixed-hours contracts could hit growth at a critical time for the UK economy.
The British Chambers of Commerce, Confederation of British Industry, Institute of Directors, Federation of Small Businesses, and Make UK have written an open letter calling for urgent changes to the government’s Employment Rights Bill. The proposed new law includes a right to guaranteed hours and cracks down on zero-hour contracts without the offer of work.
The Employment Rights Bill aims to protect workers' rights and promote fair labor practices.
Key provisions include equal pay for equal work, protection from unfair dismissal, and the right to request flexible working arrangements.
The bill also establishes a minimum wage and prohibits discrimination based on age, disability, or pregnancy.
Employers must provide a safe working environment, respect employees' privacy, and allow time off for family and emergency reasons.
A Right to Guaranteed Hours
The Employment Rights Bill would guarantee new rights for workers from the first day of their employment, including sick pay, protection from unfair dismissal, parental leave, and the ‘right to request flexible working.’ New restrictions on ‘fire-and-rehire‘ processes when employees are let go and then re-employed on new contracts with worse pay or conditions will also feature in the bill.
The Impact on Business Growth
However, the business groups warn that the Bill in its current form could hit growth at an uncertain time for the UK economy. They argue that the changes will discourage companies hiring ‘particularly those at the margins of the labour market’ as business will not want to risk costly tribunal cases. The groups also urge Lords to consider if guaranteeing workers fixed-hours contracts could backfire, reduce flexibility for both employers and staff, and introduce unnecessary administrative costs.
A Concern for Productivity
The business groups support the government’s core aims of improving productivity, wages, and workers’ rights. However, they believe that the current Bill will undermine these goals. They argue that the guarantee of fixed-hours contracts could lead to reduced flexibility for both employers and staff, which could have negative impacts on productivity.
Productivity is the measure of how efficiently an individual or organization completes tasks.
Key strategies include prioritizing tasks, breaking them down into manageable chunks, and minimizing distractions.
Technology can also play a significant role in boosting productivity, with tools like project management software and time tracking apps helping to streamline workflows.
According to studies, employees who use these tools experience a 20-30% increase in productivity.
A Response from the Government
In response to the letter, a government spokesperson said that the Bill will represent ‘the biggest upgrade to workers’ rights in a generation’ and has strong support amongst business and the public. The spokesperson added that the government will engage with businesses on the implementation of legislation to ensure it works for employers and workers alike.
A Concerns from the Office for Budget Responsibility
The Office for Budget Responsibility (OBR) has said that it has not yet been able to take account of the Employment Rights Bill in its forecasting as there is not enough detail available on the policy. However, the OBR’s forecast released last month suggested that regulations which ‘affect the flexibility of businesses and labour markets’ are likely to have ‘material and probably net negative, economic impacts on employment, prices, and productivity’.
A Warning from Conservative Shadow Business Secretary
Andrew Griffith, Conservative shadow business secretary, said that the UK’s top business groups calling for a rethink sends a powerful message. He stated that as currently drafted, the bill will have deeply damaging implications for the government’s priority growth mission. The world has changed, and the government must shelve this disaster of a bill now.
Andrew Griffith is a British Conservative Party politician.
He was born on February 4, 1966.
Griffith served as the Member of Parliament (MP) for Arundel and South Downs from 2010 to 2019.
Prior to his political career, he worked as an army officer in the Royal Tank Regiment.
Griffith has also been involved in various business ventures, including a stint as the CEO of a private equity firm.
