Political opinion with Alison Griffiths MP: Why the Government’s employment legislation will cause more harm for jobs

Last week, the Employment Rights Bill returned to the House of Commons for its final stages. While some of the headlines look good, the devil is in the detail.

This Bill comes on the back of the Autumn Budget which unleashed higher National Insurance Contributions, increased employer pension contributions, greater business rates through lost relief, and a rise across all age groups in the minimum wage, particularly for 16–20-year-olds.

Although these measures might sound like good news for workers, I am concerned that the Government has created an incredibly hostile trading environment for thousands of businesses. The Employment Rights Bill now imposes further risk for business owners and entrepreneurs, putting jobs in jeopardy.

To deliver jobs and prosperity, businesses need the conditions to thrive. It is, after all, businesses and individuals who risk their own assets to create economic growth and make jobs. In turn, generating cash via taxation, which the Treasury spends on our local schools, hospitals, and roads.

Under the Government's plans for “Day One” rights, businesses are asked to take greater risks when making new hires because it will be harder to let go of new starters even when they are not working out. I worry this will make employers more risk-averse and less likely to hire prison leavers, care leavers, non-traditional candidates, career changers, returning mothers, and young job seekers.

Trade unions also gain more powers and have unlimited access to the workplace. Unions will gain the right to communicate with any business, irrespective of whether they are established within the business. They won’t even need to communicate in person as they will now be able to do so digitally. Furthermore, unlike most streaming services, which give an annual reminder, unions will only have to notify their members every ten years about their political fund and ask whether the individual wants to opt out of making contributions.

New limits on zero-hour contracts will also remove flexibility. This will be especially damaging for residents in our area who rely on seasonal employment and for young people who rely on casual work, in bars and elsewhere, alongside their studies.

Changes to business regulation need to strike a careful balance. Local businesses are telling me about the disastrous impact this Government’s measures are already having. Some are cutting back on hours available for staff, and in some instances, considering reducing the number of employees due to the Autumn Budget. They fear with this Employment Rights Bill, that things will get worse.

Labour has a super-sized majority and pushed this legislation through the House of Commons without listening to concerns, especially from small businesses. During the two days of debate, I stood up in the Chamber to push for changes. It now goes to the House of Lords, and I'll continue to keep pushing for the measures that place the largest burden to be removed.

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If you have an issue you think I can help with, please email me at [email protected] or write to me at Alison Griffiths MP, House of Commons, London, SW1A 0AA.