Small employers brace themselves for Employment Bill proposals

A new survey shows that smaller sized businesses have concerns about how the upcoming Employment Rights Bill will impact them.

As many as 75% of small business employers are worried about the unfair dismissal changes that will come with it, while a further 74% say they’re concerned about changes to Statutory Sick Pay (SSP).

The Federation of Small Businesses (FSB) research also found that 67% of SMEs say the Employment Rights Bill proposals would cause them to curb hiring and 32% plan to reduce their headcount before the measures are introduced.

Tina McKenzie, FSB’s Policy Chair, commented, “The figures speak for themselves – 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.

“Of course, existing protections against unfair dismissal for protected characteristics from day one are essential and should remain. But extending these rights to any and all cases from day one risks opening the door to frivolous claims.

“Ministers should recognise the risk to jobs and resist any approach that comes across as out of touch with business reality, instead of brushing off their concerns.

“The Prime Minister should ditch these reckless changes to unfair dismissal and reinstate the one-year qualification period that worked under the last Labour Government. It’s a zero-cost fix that would show he understands what it takes to create and sustain jobs.

“If taking on staff becomes a legal minefield, businesses will simply stop. That means more people on benefits, a ballooning welfare bill, and a devastating hit to living standards. Those who will be shut out of work because of this Bill deserve better from the Government.”

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