Latest news with #employmentBill
Yahoo
5 days ago
- Business
- Yahoo
Rayner's workers' rights bill will damage growth, warn bosses
Angela Rayner's radical shake-up of workers' rights will hurt economic growth, bosses have warned, as companies prepare to slash hiring and curb investment. More than seven in 10 business leaders believe the Government's Employment Rights Bill will have a negative impact on the country's economy, according to a survey carried out by the Institute of Directors (IoD). Nearly half said they would be less likely to hire new staff as a result of the reforms to workers' rights. The warning will raise alarm bells for the Chancellor who has said that restoring economic growth is her priority. It threatens to deepen tensions between Ms Reeves and the Deputy Prime Minister, who is overseeing the workers' rights reforms. The pair have already clashed over the direction of economic policy, with a leaked memo recently revealing Ms Rayner was pressing the Chancellor to pursue tax rises instead of spending cuts. Under the workers' rights reforms, employees will be able to claim sick pay from the first day of their illness, instead of the fourth. The Bill will also extend the powers of unions in the workplace, making it easier for trade groups to organise strikes by weakening the thresholds currently needed to trigger a walkout. Sir Keir Starmer previously made the shake-up, dubbed Labour's 'new deal for working people', as a core part of his manifesto in the lead-up to his victory in the general election. However, it has sparked concern from business chiefs. The survey by the IoD found that more than half (52pc) of company bosses said they would be more likely to invest in automation as a result of the Bill. A quarter of business leaders polled said the Bill made it likely that they would make redundancies in a further blow to the labour market. The IoD, the so-called 'bosses' union', represents 20,000 business leaders across the country, ranging from entrepreneurial small ventures to major corporations. Already, many of those businesses have reported a slowdown in hiring since the Chancellor announced an increase in employers' National Insurance contributions and the minimum wage in the autumn Budget. The rise in labour costs has caused many businesses to cut jobs or scrap hiring plans. Alex Hall-Chen, a principal policy adviser for employment at the IoD, said: 'Government has yet to show that it is listening to the concerns of business about the potential unintended consequences of the Bill as it is currently drafted. 'If there is a silver lining, it is that more employers will invest in automation and other measures which may improve the UK's stagnating productivity levels.' The IoD has called on the Government to make targeted changes to the Bill, which it believes would soften the negative impact of the reforms on hiring. One of its proposed changes includes keeping the existing thresholds for statutory recognition of trade unions. Andrew Griffith, the shadow business secretary, said: 'If Labour ministers had worked in business they would know their choices mean that British workers will lose their jobs to robots and foreign workers. 'Whilst all Labour governments leave unemployment higher than they found it, this time they are actually passing laws to guarantee it.' The warning over the worker rights reforms comes after MPs warned that Britain's high energy bills and poorly coordinated efforts to fund business growth was hitting growth and prosperity. MPs on the business and trade committee said: 'The UK's high electricity prices are damaging the ability of UK businesses to compete, attract investment and decarbonise.' It pointed to evidence from Nissan that the company's Sunderland plant has higher energy bills than any of its other car factories in the world. Liam Byrne, chairman of the committee, said: 'The evidence we've heard from the nation's leading industrialists, scientists, economists and trade unionists is that this moment of history will be lost if the Chancellor's new investment is not matched by a re-making of the British state for a new economic era.' The MPs also called on the Chancellor to act to stop many of the best entrepreneurs from leaving the country for lack of funding to support their rapidly growing businesses. A government spokesman said: 'We've consulted extensively with business on our proposals, and we will continue to work closely with employers to ensure new laws work for them while putting money back into the pockets of working people.' Responding to the select committee report, a government spokesman said ministers were working on 'creating the best possible conditions for the private sector to thrive.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
The Herald Scotland
6 days ago
- Business
- The Herald Scotland
Sickness absence rate down to just four days a year for every worker
The percentage of working hours lost fell by 0.3 percentage points over the year to 2%, said the report. The sickness absence rate – the percentage of working hours lost because of sickness or injury – was 2.0% in 2024, 0.3 percentage points down on the previous year. Read more ➡️ — Office for National Statistics (ONS) (@ONS) June 4, 2025 Minor illnesses were the most common reason given for sickness absence in 2024, accounting for almost a third of cases, followed by musculoskeletal problems at 15.5%. Groups with the highest rates of sickness absence in 2024 included women, older workers, those with long-term health conditions, people working part-time and public sector workers, said the ONS. It added that time lost averaged 4.4 days per worker in 2024. Minor illnesses were the most common reason given for sickness absence in 2024, accounting for 30.0% of occurrences, followed by musculoskeletal problems at 15.5%. — Office for National Statistics (ONS) (@ONS) June 4, 2025 Amanda Walters, director of the Safe Sick Pay campaign, an alliance campaigning for sick pay reform, said: 'The fall in sickness absence may seem a positive development but the figures mask the fact that far too many UK workers regularly go to work when they are too ill. 'We are amongst the least likely to take sick days in Europe as our woeful statutory sick pay system is forcing millions of people to drag themselves into work ill, risking their long term health because they need to pay the bills. This costs the economy billions in lost productivity. 'The Government is fixing one part of the problem by improving sick pay coverage for some lower earners in the employment Bill, but is not doing enough to sort out the sorry state of our sick pay system. 'The weekly rate of sick pay remains just £3 an hour for a full time worker. If we are serious about improving the health of the working age population, the Government needs to stop ignoring the elephant in the room and put statutory sick pay in line with the minimum wage.'
Yahoo
12-05-2025
- Business
- Yahoo
Rayner's workers' rights crush confidence to record low
Angela Rayner's plan to overhaul workers' rights has crushed business confidence to a record low, as bosses prepare to slash jobs and curb hiring. Optimism among employers has fallen to levels not seen outside of the pandemic, according to a new survey, with just 25pc of bosses claiming they expect to increase headcount over the next three months. This is the lowest level since late 2020, when Britain was still in the depths of Covid. A quarter of employers are also planning to make redundancies in the next quarter, the survey by the Chartered Institute of Personnel and Development found, as fears mount over the impact of looming red tape. Under the Deputy Prime Minister's Employment Rights Bill, bosses will be banned from handing out zero-hour contracts and flexible working will be made the 'default' for all. Workers will also be handed full rights from day one, including maternity and paternity leave, sick pay and protection from dismissal. The Bill is set to pile further pressure on businesses already battling Rachel Reeves's £25bn National Insurance tax raid, Donald Trump's trade war and the increase in the minimum wage. James Cockett, economist at CIPD, highlighted the threat Ms Rayner's reforms now pose to bosses given the new economic environment. 'The Employment Rights Bill is landing in a fundamentally different landscape to the one expected when it formed part of the Labour manifesto in summer of last year,' he said. 'It was always going to be a huge change for employers, but they're operating in an even more complex world now.' Andrew Griffith, the shadow Business Secretary, accused the Government of 'killing Britain's businesses' by pressing ahead with its Employment Rights Bill after increasing taxes. He said: 'Alongside making families £3,500 worse off, Labour's jobs tax is crushing confidence, killing jobs and pushing employers to the brink. Under Labour, the economy has flatlined and with businesses under mounting pressure, things can only get worse. 'This report only confirms what we hear daily from the shop floor to the boardroom – confidence has collapsed. Labour can't understand why because their cabinet has zero business experience.' It came as the Recruitment and Employment Confederation (REC) found another fall in the number of workers landing new permanent jobs last month, signalling a further lack of confidence in the economy. Neil Carberry, chief executive of the recruitment industry group, urged the Government to revisit its workers' rights reforms to ease pressure on businesses. He said: 'The biggest single drag factor on activity right now is uncertainty. Some of that can't be helped, but payroll tax costs and regulation design is in the Government's gift. 'Businesses have welcomed positive discussions with ministers on the Employment Rights Bill, but now it is time for real changes to address employers' fears and boost hiring. 'A sensible timetable and practical changes that reduce the red tape for firms in complying with the Bill will go a long way to calming nerves about taking a chance on someone.' Separately, the latest pay for newly-hired temporary staff increased at the fastest pace in 11 months, according to REC, fuelled by the latest rise in the minimum wage. This adds to the Bank of England's dilemma as officials fear rising pay will push up inflation, even amid a slowdown in the wider economy. It means the Monetary Policy Committee is expected to cut interest rates only cautiously after last week's reduction from 4.5pc to 4.25pc. A government spokesman said: 'Through our transformative Plan for Change, the Government has delivered the biggest upgrade to workers' rights in a generation, and our measures already have strong support amongst business and the public. 'We've consulted extensively with business on our proposals, and we will engage on the implementation of legislation to ensure it works for employers and workers alike.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
12-05-2025
- Business
- Telegraph
Rayner's workers' rights crush confidence to record low
Angela Rayner's plan to overhaul workers' rights has crushed business confidence to a record low, as bosses prepare to slash jobs and curb hiring. Optimism among employers has fallen to levels not seen outside of the pandemic, according to a new survey, with just 25pc of bosses claiming they expect to increase headcount over the next three months. This is the lowest level since late 2020, when Britain was still in the depths of Covid. A quarter of employers are also planning to make redundancies in the next quarter, the survey by the Chartered Institute of Personnel and Development found, as fears mount over the impact of looming red tape. Under the Deputy Prime Minister's Employment Rights Bill, bosses will be banned from handing out zero-hour contracts and flexible working will be made the 'default' for all. Workers will also be handed full rights from day one, including maternity and paternity leave, sick pay and protection from dismissal. The Bill is set to pile further pressure on businesses already battling Rachel Reeves's £25bn National Insurance tax raid, Donald Trump's trade war and the increase in the minimum wage. James Cockett, economist at CIPD, highlighted the threat Ms Rayner's reforms now pose to bosses given the new economic environment. 'The Employment Rights Bill is landing in a fundamentally different landscape to the one expected when it formed part of the Labour manifesto in summer of last year,' he said. 'It was always going to be a huge change for employers, but they're operating in an even more complex world now.' Andrew Griffith, the shadow Business Secretary, accused the Government of 'killing Britain's businesses' by pressing ahead with its Employment Rights Bill after increasing taxes. He said: 'Alongside making families £3,500 worse off, Labour's jobs tax is crushing confidence, killing jobs and pushing employers to the brink. Under Labour, the economy has flatlined and with businesses under mounting pressure, things can only get worse. 'This report only confirms what we hear daily from the shop floor to the boardroom – confidence has collapsed. Labour can't understand why because their cabinet has zero business experience.' It came as the Recruitment and Employment Confederation (REC) found another fall in the number of workers landing new permanent jobs last month, signalling a further lack of confidence in the economy. Neil Carberry, chief executive of the recruitment industry group, urged the Government to revisit its workers' rights reforms to ease pressure on businesses. He said: 'The biggest single drag factor on activity right now is uncertainty. Some of that can't be helped, but payroll tax costs and regulation design is in the Government's gift. 'Businesses have welcomed positive discussions with ministers on the Employment Rights Bill, but now it is time for real changes to address employers' fears and boost hiring. 'A sensible timetable and practical changes that reduce the red tape for firms in complying with the Bill will go a long way to calming nerves about taking a chance on someone.' Separately, the latest pay for newly-hired temporary staff increased at the fastest pace in 11 months, according to REC, fuelled by the latest rise in the minimum wage. This adds to the Bank of England's dilemma as officials fear rising pay will push up inflation, even amid a slowdown in the wider economy. It means the Monetary Policy Committee is expected to cut interest rates only cautiously after last week's reduction from 4.5pc to 4.25pc. A government spokesman said: 'Through our transformative Plan for Change, the Government has delivered the biggest upgrade to workers' rights in a generation, and our measures already have strong support amongst business and the public. 'We've consulted extensively with business on our proposals, and we will engage on the implementation of legislation to ensure it works for employers and workers alike.'
