Reforms in the long-awaited Employee Rights Bill, published following the General Election, have been largely welcomed, but there are some concerns about the potential impact on small businesses according to David Llewellyn, chief executive of the AVA.
Many of the proposals within the Bill were anticipated, having been outlined in the King’s Speech earlier this summer and prominently featured in Labour’s election manifesto. Touted as the most significant reform to workplace rights in a generation, the Bill aims to enhance job security and working conditions across the UK, while contributing to economic growth.
However Mr Llewellyn cautioned: “Granting day-one unfair dismissal rights to new employees could increase risks for small businesses, making them less likely to hire. This legislation might deter small employers, especially those offering opportunities to people returning after long absences, such as for health or caregiving reasons. The added employment costs and lack of clear guidelines on probation periods may stifle job creation and growth. Small businesses, particularly those with fewer than 10 employees, are already facing financial challenges, and further regulations could worsen the situation. Exempting these ‘micro’ and ‘small’ firms could balance reform goals without burdening them.”
The Bill’s Parliamentary process is already underway, with its second reading having taken place on 21 October 2024. Various consultations on different aspects of the Bill will follow in 2025 which the AVA will be keeping abreast of.
For more information, visit What does the Employment Rights Bill mean for you? – GOV.UK
