The British Chambers of Commerce says businesses are feeling a post-Budget bruising, and has raised businesses’ serious concerns with MPs about the legislation and the speed and detail of consultation in the Employment Rights Bill.
The issues highlighted included a lack of detailed consultation on wide ranging changes to Trade Union powers; greater restrictions and penalties for firms who need to make workforce changes, and increased responsibilities, costs and complexity for employers.
The BCC said the Bill includes some of the most significant and wide-ranging changes to employment laws for decades. Employers are concerned that major decisions have been taken and written into the Bill without detailed consultation with business.
The Government’s own assessment suggests that the legislation will cost businesses almost £5bn per year, with SMEs impacted the most.
These costs follow a harsh budget for business, where increases in employers’ national insurance contributions and the national living wage are set to pile a further cost of over £20bn on firms.
BCC Director General Shevaun Haviland said: “Businesses welcome the overall aim of this Bill to guarantee job security, offer employees a fair reward and provide them with workplaces free from discrimination.
“But the scale and scope of the changes is huge, with many feeling they are being rushed through at breakneck speed.
“The Budget has already left many firms feeling bruised, and if this legislation is enacted as it stands, it could hamper growth, restrict recruitment and lead to job losses.
“Firms are particularly concerned about the lack of detailed consultation on the Trade Union changes, especially when the Government’s own assessment was so vague about the impact.
“Overall, there is a lot in the Employment Rights Bill that reinforces much of what good businesses already do. But the fear remains that certain elements could create huge costs for firms and damage the UK’s ambitions for growth.”
