The Institute of Directors, along with the CBI, has accused the government of failing to listen to business in regards to reforms to Employment Rights Bill which is currently before the House of Lords.
Alex Hall-Chen is the principal policy advisor for the IoD. The IoD released research that showed that 72 percent of UK business leaders believed that the Bill would negatively impact the UK’s economic growth. He stated that “the Government has not yet shown that it listens to the concerns that business leaders have about the unintended consequences that could be caused by the Bill in its current form.”
As the bill continues to pass through the House of Lords we call for targeted changes in the Bill in order to restore confidence to business in hiring and investing in staff in the UK.
Rupert Soames, chairman of the CBI, told the Acas annual conference last month that ministers failed to listen to the concerns of business regarding the proposals.
According to new research by the Institute of Directors, over seven out of ten (72%) UK business leaders think that the Employment Rights Bill could negatively impact the UK’s economic growth.
The research also examined how business leaders intended to respond to the Bill’s measures.
A quarter (23%) said they were more likely than the other half (49%) to lay off staff. Over half of directors (52%) also said they would be more likely invest in automation.
Hall-Chen said: “If there’s a silver lining to this, it’s that more employers are investing in automation and other methods which could improve the stagnating productivity level of the UK.”
The Institute would like the proposed addition of additional protections from unfair dismissal to the Bill modified so that they come into effect only after six months employment and not on the first day.
The IoD is calling for a 52-week reference period to determine the right to guaranteed hours. Employees should be allowed to request a contract that reflects the hours they regularly work, instead of being offered one.
Directors want to keep the existing thresholds of statutory recognition for trade unions and a waiting day before employees are eligible to receive Statutory Sick Pay.
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