Business secretary Jonathan Reynolds has rejected early criticism of the Employment Rights Bill from some quarters of the business community.
He was responding to Tina McKenzie, policy chair of the Federation of Small Businesses, who said in a statement: “This legislation is rushed job, clumsy, chaotic and poorly planned – dropping 28 new measures onto small business employers all at once leaves them scrambling to make sense of it all. Beyond warm words, it lacks any real pro-growth element and will increase economic inactivity, seriously jeopardising the government’s own 80% employment target.”
Reynolds, told the Today programme on Radio 4: “I would reject that [the FSB comments] very strongly. First of all, there’s no surprises here. Everything in this package was in the manifesto.
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“Second of all, there is a very strong business rationale for these measures in terms of getting more people into work, in terms of making sure there’s a link between job satisfaction and productivity.
“It levels the playing field to what a lot of businesses are already doing, actually, to a higher standard than those measures in the Bill would bring forward.
“It gives more incentives for training. We have listened and worked very closely with specifically the Federation of Small Businesses.”
He added that much of the criticism reminded him of the claims, made by the Conservatives and some business groups, that when the last Labour government introduced the minimum wage in 1998, it would lead to mass job losses.
The Confederation of British Industry struck a different tone to that of the FSB. CEO Rain Newton-Smith welcomed the Bill but advised ministers to continue to listen to businesses on the proposals. He said: “Politicians and businesses have a shared goal in wanting to raise living standards through higher levels of growth underpinned by investment and increased productivity.
“The government deserves credit for its willingness to engage with businesses and unions on how to make a success of the plan to make work pay.
“It’s that willingness to work together that can ensure we find the right landing zone and improve living standards by avoiding the unintended consequences that businesses have warned against.
“With a number of critical details still subject to consultation, it’s important the government builds on the good engagement to date to ensure we get the detail right on this decisive piece of legislation.”
Simon Roberts, chief executive of Sainsbury’s, also broadly welcomed the Bill. He said: “We share the government’s vision of making work pay, enabling growth and driving productivity. We welcome today’s announcement and government engagement with business to date and look forward to seeing progress on business rates reform, which would deliver real benefits for our colleagues, customers and communities.”
Greg Jackson, CEO of Octopus Energy, was similarly positive: “In formulating these proposals it’s clear that the government has listened to both workers and employers to create protections against bad practices while enabling good businesses to invest in growth and training. For example, the probation period will allow progressive employers to give a chance to people without typical experience or educational backgrounds, opening up new opportunities for them in great careers.”
Industrial relations body Acas warmly welcomed the new Bill. Its interim chief executive Dan Ellis said: “It is good to see workplace relations taking centre stage today. Well-managed workplaces with good relations are more productive, more profitable, more resilient, and more likely to contribute to economic growth.”
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