Employment Rights: Impact on Businesses

The hon. Member for Sheffield South East questioned the impact of the Employment Rights Bill on business costs, as estimated by Labour's own assessment at £5 billion. Agreed with the Minister that workers in good jobs can contribute economically by spending money locally.

Welcomed the Minister to her position, questioned how she reconciles falling payroll employment with Labour's mission for economic growth, citing recent labour market data showing a decline of 142,000 in payroll employment.

Low productivity was a major feature of the last Administration, and low pay and insecure hours contribute to high turnover and sickness absence. The Employment Rights Bill addresses these issues.

Small businesses are the backbone of the British economy, with 89.3% being micro-sized and having fewer than 10 employees. The Federation of Small Businesses says sickness absence costs an average small employer more than £3,500 a year.

Responded to Steve Barclay regarding social care concerns, stating willingness to address specific interests and concerns.

The Chancellor promised the most pro-business Government ever, but at a CEO summit, not a single hand went up when asked how many CEOs thought it was true. The hon. Member for Redcar mentioned repairing the economy in her first year. Questioned the adequacy of impact assessments, citing concerns from the Regulatory Policy Committee. Fears the Employment Rights Bill will negatively impact the economy, leading to a decrease in employment for women and disabled people.

Contrary to concerns about industrial action and employer-employee relations, good partnerships between trade unions and business can strengthen both sides. The new Employment Rights Bill will provide day one employment rights, improve statutory sick pay, end abusive practices like fire-and-rehire, and protect against exploitative zero-hours contracts.

The Liberal Democrats support measures to strengthen employment rights but are concerned about the lack of detail in the Employment Rights Bill, which prevents long-term planning for businesses. They urge the Government to scrap national insurance increases and implement reforms such as a youth mobility scheme.

My hon. Friend highlights flaws in the impact assessment and notes that the accumulation of different aspects of the Bill could lead to unintended consequences, such as easier strike action based on grievances. Asked about the additional costs and funding gap for social care due to the Bill.

Asked the hon. Member for York Central whether she agrees that strengthening statutory sick pay is particularly important for lower-paid workers who cannot afford to take time off work without it, emphasising its significance in contrast to Opposition Members' views.