The º£½ÇÊÓƵ's top five business organisations have issued a stark warning that the government's flagship Employment Rights Bill could be "deeply damaging" to the country's growth prospects and may lead to a decline in living standards.
In an unprecedented move, the 'Big Five' of Britain's business groups have collectively penned a letter to every member of the House of Lords, calling for rigorous examination and amendments to five critical aspects of the Employment Rights Bill, which they believe will further erode confidence among British businesses, as reported by .
The industry bodies jointly expressed their concern, stating: "Our collective position is that... the Bill will have deeply damaging implications for the government's priority growth mission as well as their admirable focus on tackling rising economic inactivity," and warned that the policies combined are "taken together, [the policies are] a recipe for damaging, not raising livings standards."
Labour's workers' rights package, which includes key proposals such as the prohibition of 'exploitative zero-hours contracts' and the outlawing of 'fire and rehire' tactics, was a cornerstone of the party's manifesto in the run-up to last year's general election.
While the legislation has been hailed by trade unions and progressive think tanks as a "much-needed upgrade" to employment laws, it has also sparked considerable alarm within the business community. Business leaders contend that the proposed changes will burden º£½ÇÊÓƵ companies with excessive bureaucracy and leave them vulnerable to "vexatious" legal actions.
A letter obtained by City AM, bearing the signatures of top brass from the British Chambers of Commerce (BCC), Confederation of British Industry (CBI), Institute of Directors (IOD), Federation of Small Businesses (FSB), and Make º£½ÇÊÓƵ, represents a significant escalation in the business community's opposition to recent legislative proposals.
These leading business organisations have issued a scathing assessment of the Bill's proposed protections against redundancies, cautioning about the potential impact on recruitment and job creation. The legislation in question introduces a range of new rights for employees from their first day in a role, including safeguards against unfair dismissal.
However, the 'Big Five' have alerted the Lords that the Bill could expose companies to protracted and costly Tribunal proceedings, which they fear would make employers "more cautious about creating new jobs when taking the risk of trying to grow".
Shadow Business Secretary Andrew Griffith has echoed these concerns, stating: "the business groups are correct when they say, as currently drafted, the Bill will have deeply damaging implications for the government's priority growth mission."
He urged: "The world has changed, the government must shelve this disaster of a Bill now."
Despite acknowledging that many aspects of the proposed overhaul are uncontroversial, the letter also draws attention to contentious provisions regarding changes to contractual terms, arguing that such measures could "stifle innovation, productivity and growth."
Among the concerns raised was the Bill's elimination of accountability measures for trade unions, which the business groups labelled a "recipe for conflict." The letter asserts that "removal of the statutory recognition and strike ballot turnout thresholds upends firms' confidence that union representatives speak on behalf of staff."
The authors of the letter are urging the Lords to thoroughly examine and enhance this legislation to ensure it is genuinely both pro-business and pro-worker, and to prevent unnecessary damage to employment and growth.
A spokesperson for the Department for Business and Trade responded: "We've consulted extensively with business on our proposals, and we will engage on the implementation of legislation to ensure it works for employers and workers alike."
