UK businesses alarmed by fast-tracked Employment Rights Bill: BCC

Businesses are also sceptical about the benefits of the bill with just one in 50 firms saying they think the trade union proposals will be positive, as per research by the BCC.

“The opportunity to make any significant changes to the Employment Rights Bill to ease the cost and disruption to business is fast disappearing over the horizon. While the government has consulted on several aspects, and listened to some concerns, the legislation still does not strike the right balance,” said Jane Gratton, deputy director public policy at the British Chambers of Commerce (BCC).

Gratton further said that several proposals in the Employment Rights Bill were deeply concerning for employers. She warned that they would raise employment costs, increase complexity, and heighten risks for firms—especially small and medium-sized enterprises (SMEs), which would be disproportionately impacted. Gratton noted that the changes could lead to unintended consequences, limiting employment opportunities and hindering the UK’s economic growth.

She emphasised that for the economy to grow, businesses needed flexibility and agility to respond to challenges and opportunities. She suggested that the government should support, not obstruct, firms in innovating, adopting new technologies, and boosting productivity and competitiveness.

She argued that by imposing more restrictions and causing further delays before changes can take place, the Bill threatened to undermine these efforts, creating a lose-lose situation for everyone in the workplace.

Gratton added that while the legislation did include elements already being practised by responsible businesses, some specific proposals required amendment. She highlighted planned changes to dismissal rules, trade union ballot thresholds, and zero-hours contracts as key areas that needed to be reconsidered.

“The government must continue its positive approach to engagement with business and remain open to changes. Only then can it ensure this legislation is proportionate, affordable and right for both firms and their employees,” added Gratton.

ALCHEMPro News Desk (SG)