“Some of the proposals are deeply worrying for employers. There’s a high risk of unintended consequences that could limit employment opportunities and economic growth,” BCC deputy director public policy Jane Gratton said in a statement.
While the UK has consulted business and listened to concerns, the Employment Rights Bill “still does not strike the right balance”, the British Chambers of Commerce (BCC) said.
“Some of the proposals are deeply worrying for employers.
There’s a high risk of unintended consequences that could limit employment opportunities and economic growth,” BCC deputy director public policy Jane Gratton said.
“To grow our economy, firms must have the flexibility to deal with challenges and opportunities. Government needs to help businesses innovate, adopt new technologies and be more productive and competitive. By adding more restrictions, complexity, costs and delays, the Bill jeopardises all of this—creating a lose-lose scenario for everyone in the workplace,” she noted.
“While there many are things in the legislation that reflect what good businesses are doing already, there are other specific proposals that need to be amended. Planned changes to dismissal rules, trade union ballot thresholds and zero hours contracts, for example, are some of the critical areas that need to be revisited in the next stage of the parliamentary process,” she added.
The Employment Rights Bill would reform UK employment law in a wide range of areas, including new rights to guaranteed hours, flexible working and bereavement leave, changes to statutory sick pay and new duties on employers to prevent sexual harassment at work.
The bill would also introduce day one rights to paternity and parental leave, enhanced protections from unfair dismissal and protections from dismissal for pregnant women and new mothers.
Other changes would include alterations to the statutory framework for trade unions and industrial relations, reinstating the School Support Staff Negotiating Body in England and introducing collective bargaining in the social care sector.
It would also establish an agency—the Fair Work Agency—to extend the scope of state enforcement of labour market legislation, extend the time limits that apply to the employment tribunal, and make changes to collective redundancy requirements and the working conditions of seafarers, according to a research briefing of the House of Lords Library.
The government introduced the bill in the House of Commons on October 10, 2024, and it was debated at a second reading on October 21 the same year. The House of Commons passed the bill at its third reading on division, by 333 votes to 100.
Fibre2Fashion News Desk (DS)