Businesses 'very worried' by new employment Bill

EMPLOYERS deluged by a “tsunami of cost pressures” have issued a plea for ministers to water down new workers’ rights legislation returning to Parliament this week.

- By Jonathan Walker WHITEHALL EDITOR

The House of Lords has added a series of business-friendly amendments to the Employment Rights Bill and is due to debate it again on Wednesday.

However, there are fears the Government will use its Commons majority to remove the changes when it is next debated by MPs in the coming weeks.

Jane Gratton, deputy director public policy at the British Chambers of Commerce, said: “There are some aspects of the Bill which are very worrying for employers.

“We urge the Government to act on the concerns being raised.”

The legislation is championed by Deputy PM Angela Rayner, who called it “the biggest upgrade to workers’ rights in a generation”.

But an impact assessment produced by the Government says it will impose direct costs on businesses of up to £5billion.

Firms might simply absorb this in the form of lower profits but it could also lead to higher prices, lower wages or fewer jobs, the analysis warned.