Tories call on Labour to abandon flagship Employment Rights Bill
The Labour government’s controversial Employment Rights Bill returns to Parliament on Tuesday when it will face a fresh assault from Tory MPs, with shadow business secretary Andrew Griffith claiming the Bill will “take Britain back to the dark days of the 1970s.”
Labour’s flagship legislation aims to boost protections against unfair dismissal, improve conditions for gig economy workers and strengthen workers’ rights in a package hailed by ministers as “pro-growth, pro-business and pro-worker.”
However, employers groups and business leaders have raised serious concerns, with CBI president Rupert Soames warning last week that the measures will be “highly damaging” to business investment.
Small businesses have been particularly vocal in their criticism, with Tina Mackenzie, policy chair at the Federation of Small Businesses, warning that “plans to allow employees to sue their employers on their first day on the job will wreak havoc on our already fragile economy, while changes to Statutory Sick Pay will make employers think twice about their hiring plans.”
The Tories will table a string of amendments to the Bill this week, addressing what they describe as “the worst elements of the Bill” including a so-called “banter ban” that the Conservatives claim “will force landlords to police pub chat that risks offending employees.” Dubbing the Bill a “Trade Union Charter,” the Tories are also calling on Labour not to reduce the notice period unions must give employers ahead of industrial action from two weeks to just one.
Andrew Griffith said “Labour should scrap the Bill altogether, and if they won’t, at a minimum they should back our common-sense amendments.”
Justin Madders, employment minister, told City PM recently that fears over the Bill were “misplaced” and that the proposals represent “a real step forward in sending the message out that if you treat your staff well, you’ll have better recruitment, better retention, better productivity and overall, a better, successful business.”
The government’s own impact assessment of the measures suggests businesses will be hit with around £5bn of additional costs.