11 Oct 2024

Employment reforms must be ‘pro-business’ as well as ‘pro-worker’ - Chamber

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The Government must ensure its new employment bill - described as the “biggest upgrade to rights at work for a generation” – is both pro-worker and pro-business, business leaders said today.

Although the Employment Rights Bill, announced yesterday, promises a major shake-up of workers’ rights, some of the proposed reforms are still being worked out and changes could be made to proposals before most of them take effect in two years’ time.

Reforms could grant workers in England, Scotland and Wales the right to claim unfair dismissal from day one – a big change from the existing two-year qualification period.

Major changes have also been proposed to zero-hours contracts, flexible working (which will become ‘default’ for all workers), sick pay (the waiting period and lower earnings limit to receive Statutory Sick Pay will be removed) and unpaid parental and bereavement leave.

Fire and rehire practices will also be banned in most circumstances, although a company could still use it if at risk of becoming insolvent.

Earlier in the week, the GBCC organised a roundtable with senior business leaders, along with Jane Gratton, deputy director for Public Policy at the British Chambers of Commerce and Caleb Deeks, the director general for Competition, Markets & Regulatory Reform at the Department of Business & Trade, to discuss the rollout of the bill.

The meeting took place at the campus of Chamber patron South & City College Birmingham.

Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, said: “Yesterday’s announcements will have major reverberations for employers across the country as the Government attempts to create a framework of workers’ rights which reflect the contours of the modern economy.

“The principles that underpin the legislation are clear – ultimately, a healthy and happy workforce is a more productive one.

“However, as many local business leaders stressed at our recent roundtable, the overwhelming majority of firms across the country are already operating in the right fashion and employers should not be punished as a result of the actions of an unscrupulous minority.

“It’s reassuring to see that this is the start of the process – many businesses have suffered from crippling cost pressures in the recent past and will need time to prepare for the changes that will be implemented in the years to come.

“As the bill moves through Parliament, it’s clear that ongoing dialogue with Government and Trade Unions is going to be essential to guarantee the voice of business is effectively represented and ensure the programme is both pro-worker and pro-business.

“As a Chamber we stand ready to partner with local businesses to champion their needs and raise awareness of any unintended consequences linked to this agenda that could choke off firm level investment and ultimately hinder growth.”

Pictured: Participants in the GBCC's Make Work Pay roundtable at South & City College Birmingham

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