The Institute of Directors has joined the CBI in accusing the government of not properly listening to business over reforms to the Employment Rights Bill, which is currently in the House of Lords.
As the IoD published research showing that more than seven in 10 (72%) business leaders believe that the Bill will have a negative impact on UK economic growth, principal policy advisor at the organisation Alex Hall-Chen, stated: “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.
“As the Bill continues its passage through the House of Lords, we are calling for targeted changes to the Bill to restore business confidence in hiring and investment in staff in the UK.”
Last month, CBI chairman Rupert Soames told the annual Acas conference that ministers were failing to listen to business concerns over the proposals.
New research from the Institute of Directors reveals that over seven in 10 (72%) business leaders believe that the Employment Rights Bill will have a negative impact on UK economic growth.
The research also investigated how business leaders planned to respond to the measures in the Bill.
Half (49%) reported that they would be less likely to hire new staff, a third (36%) stated that they would be more likely to outsource roles or operations to other countries, and a quarter (23%) reported that they will be more likely to make redundancies. Slightly over half (52%) of directors also reported that they will be more likely to invest in automation.
Hall-Chen added: “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 Institute would like to see the planned introduction of additional protections against unfair dismissal in the Bill amended so that they only come into effect after six months of employment, rather than on day one.
In terms of zero hours the IoD wants the planned reference period for the entitlement to guaranteed hours to be 52 weeks, and make it a right for employees to request, rather than to be proactively offered, a contract reflecting hours regularly worked.
The directors want one waiting day to be retained before employees can access Statutory Sick Pay and existing thresholds for statutory recognition of trade unions to remain.
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