UK (Parliament Politics Magazine) – Deputy PM Angela Rayner’s workers’ rights bill has raised concerns from business leaders, who warn it could impose strict regulations that hinder economic growth.
The Housing Secretary’s proposed workers’ rights bill may introduce measures that impact job creation and economic expansion, posing challenges to Labour’s economic strategy.
What did UK businesses say about Labour’s Employment Rights Bill?
Business leaders argued that new changes to the Employment Rights Bill, including a broader ban on zero-hours contracts and increased enforcement powers, signal a major shift towards policies that could hinder economic flexibility.
Corporate representatives warn that the proposed reforms in the legislation could impose excessive bureaucracy on businesses after ministers ignored their appeals for relaxed regulations. They argue the bill could introduce significant restrictions, potentially contradicting the government’s own growth strategy.
What did Craig Beaumont say about the impact of the Bill on small businesses?
The Federation of Small Businesses’ executive director, Craig Beaumont, criticized the recent policy changes, stating they undermine the Government’s efforts to drive economic expansion.
He stated,
“Ministers are now starting to run out of time to fix the Bill, and show they have the back of one million small business employers.”
What did Jonathan Reynolds say about economic growth and worker rights?
Business Secretary Jonathan Reynolds stated,
“Past Governments’ low growth and low productivity economy simply did not deliver what the UK needs, which is why we are choosing stability, investment and reform, not chaos, austerity and decline. This is why our mission to grow the economy as part of our Plan for Change is based on putting more money in working people’s pockets by making wages fairer and work more secure.”
Referring to the enhancement of workers’ rights and economic growth, he said,
“Many businesses already have worker-friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction. We want to go further and untap the UK’s full potential by attracting the best talent and giving businesses the confidence to hire to help the economy grow.”
What did Angela Rayner say about workers’ rights and economic growth?
The deputy prime minister and housing secretary stated,
“For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.”
Ms Rayner said,
“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs,”
adding,
“We are collaborating with businesses and workers to advance this landmark bill, driving growth and ensuring fair pay for all.”
What are the key amendments to the Employment Rights Bill?
- Ban on zero-hours contracts for agency workers
Under the proposed legislation, agency workers will receive contracts ensuring a set number of working hours each week.
Officials stated that the measure seeks to block agency employment from being exploited as a loophole to bypass the ban on zero-hours contracts.
The policy aims to provide stronger protection for employees, guaranteeing timely shift changes and fair compensation if their schedules are canceled or shortened on short notice.
- Statutory sick pay for all workers from day one
Around 1.3 million workers earning under £123 a week will be eligible for sick pay, receiving either 80% of their average weekly earnings or the standard statutory sick pay rate, whichever is lower.
Government sources stated that the reforms will help employees take sick leave without jeopardizing employment while also reducing illness transmission to maintain workplace productivity.
- Increased period of protection for collective redundancy
Under the proposed amendment, workers could receive up to 180 days of pay through an employment tribunal if their employer fails to comply with mandatory consultation requirements.
- New modern framework for industrial ties
The legal framework governing trade unions will be updated to reflect “modern workplaces.” Government insiders said industrial relations will be structured by “collaboration, proportionality, and accountability” to protect the interests of workers, employers, and the public.