Let us know about free updates
UK Employment Simply sign up for Myft Digest and it will be delivered directly to your inbox.
The UK’s five largest business groups warn that the government’s flagship workers’ rights bill has “deeply damaging effects” for economic growth, as it urged its peers to amend Senate laws.
In an open letter to lawmakers on Thursday, the so-called B5 trade association raised concerns about planned reforms against unfair dismissals, the right to guaranteed time contracts, a near-ban on controversial “fire and reemployment” practices, and the new powers of trade unions.
The letter was signed by creating the UK Chamber of Commerce, CBI, the Board of Directors, the Federation of Small Businesses, and the UK.
“As currently drafted, the (employment rights) bill will have a deep, damaging impact on the government’s priority growth mission,” the business group said there is a ministerial plan to tackle an increase in economic inactivity, particularly among young people.
He called on his peers to “fully scrutinize and improve this law,” ensuring it is both professional business and professional workers, and “prevent unnecessary harm to employment and growth,” and said the bill is “a recipe that will damage it, not current standard of living.”
Ir Kiel framed the law, an important pillar of last year’s workers’ election manifesto, as the greatest upgrade to the rights of generations of workers. However, official estimates cost businesses up to £5 billion a year for reform packages.
The law is expected to enter the Senate committee stage later this month, a member of the UK Parliament.
The business group warned that the introduction of so-called first-day protections against unfair layoffs would bump into the confidence of businesses to hire new staff.
They argued that employers must be able to dismiss them without the risk of facing an unfair dismissal claim in court during their nine-month probation period.
B5 also said that the increase in statutory illness wage liability “disproportionately places a burden on businesses most likely to employ people who are more likely to suffer from illness,” and called for the bill to be amended to restore the bill’s sick pay rebates.
Sweeping upgrading union rights upgrades is another point of attachment, with the group saying the current plan removes the union’s accountability mechanism and is “a recipe for conflict, not for cooperation.”
Conservative shadow business secretary Andrew Griffiths said in X that he “sent a strong message from the UK’s top business groups to call for a rethink,” claiming the minister struggles to point out support for the law from the industry.
Recommended
Whitehall figures fought back, highlighting general support for elements of the law from groups such as Centrica, Richer Sounds and Co-op.
The government said “providing the greatest upgrade to workers’ rights in generations, and our measures already have strong support between businesses and the public.”
He highlighted extensive consultations that the Bureau of Business and Trade has launched its business on the proposal, adding that “entering the implementation of the law to ensure that employers and workers function similarly.”
