Minister of Employment Rights publicly denies that proposed legislation will discourage employers from hiring new staff.
A Glance at Labour's Employment Rights Bill Amidst Business Concerns
The government's Employment Rights Bill is a hot topic among businesses, with concerns brewing about its potential impact on hiring and operations. According to the Institute of Directors, more than half of employers have fears that the bill will make them less likely to hire new staff, with over a third planning to outsource roles abroad once it's passed, and nearly half contemplating automating jobs.
Justin Madders, Parliamentary Under-Secretary for Employment Rights, insists these apprehensions are often due to "incorrect reporting around what this bill does." He likens the warnings to when the minimum wage was introduced, arguing that reports of a chilling effect on hiring were exaggerated.
A study by the University of Cambridge supports Madders' claims, indicating that the bill won't hinder growth but may boost recruitment and retention. Madders hopes the bill will be seen as a positive for everyone in the labour market, emphasizing the government's intent to ensure businesses are comfortable with its measures.
Recently, the UK's leading business groups wrote to each member of the House of Lords, warning about the bill's potentially damaging reforms to employment law. Madders declined to comment on the Autumn Budget's implications for employers, admitting he can't predict its contents.
Supporting Carers in the Workforce
Apart from the Employment Rights Bill, Madders is also focused on helping carers balance their work with caring for disabled or ill family members. He emphasizes that many businesses struggle with retention and are eager to be flexible to accommodate these workers who have new demands on their time.
The employment rights bill introduces provisions around flexible working that will allow carers to juggle their competing responsibilities. According to the Office for National Statistics, around 1.1 million 25-49 year-olds are out of work due to caring responsibilities, with a majority being women.
Ariam Enraght-Moony, Chief People Officer at TSB, expressed support for the government's approach, citing the positive impact paid leave and wider support have had on TSB employees, and calling for the government to include this vital measure in the Employment Rights Bill.
Insights from Enrichment Data
Business leaders express various concerns about the Employment Rights Bill, including reduced hiring intentions (49%), increased costs (up to £5 billion annually), and outsourcing or redundancy risks. However, the bill may lead to potential silver linings, such as increased investment in automation and extended protections for workers. The government argues that while costs to businesses may occur, they will be offset by societal benefits.
Summary
The Employment Rights Bill aims to enhance worker protections and rights but faces deep-seated concerns from employer groups and business leaders. While the bill may lead to reduced hiring and increased costs, there are also potential opportunities for growth through investment in automation and productivity gains. A balance must be struck to ensure the bill is beneficial for both employers and workers while maintaining a competitive and thriving labour market.
- The Employment Rights Bill, under focus for its potential impact on hiring and operations, also aims to introduce provisions for assisting carers who balance work and caring responsibilities for disabled or ill family members.
- Despite business leaders' concerns about potential reduced hiring intentions, increased costs, and risks of outsourcing or redundancy, the Employment Rights Bill could lead to positive outcomes, such as investment in automation and extended protections for workers.
- While discussing the bill's provisions on flexible working to support carers, Justin Madders, Parliamentary Under-Secretary for Employment Rights, urged employers to view the measures as beneficial for all parties involved in the labor market.
