Downtown in Business has renewed its calls for MP’s to look again at Workers Rights legislation, warning that the government’s new Employment Rights Bill, while well-intentioned, could have damaging consequences for small and medium-sized enterprises (SMEs), economic growth, and the wider jobs market.
The Bill, which introduces measures such as a ban on “exploitative” zero-hours contracts, day-one employment rights for unfair dismissal, and stronger collective bargaining powers, is being promoted as a major step forward for workers’ rights. However, Downtown in Business believes that the proposed changes risk creating additional costs, uncertainty, and bureaucracy for small businesses that are already facing rising inflation, increased regulation, and economic uncertainty.
Frank McKenna, Chief Executive of Downtown in Business, and a signatory to the letter from business leaders supporting Labour’s bid to win power before last year’s General Election, commented:
“Nobody disputes that workers should be treated fairly, but this Bill in its current form will make life harder for the very firms that drive job creation and innovation across the UK. Flexibility is vital for small businesses, and these new measures threaten to take that away. The result will be slower recruitment, reduced investment, and ultimately, fewer opportunities—particularly for younger workers and those looking for flexible roles.”
Downtown in Business represents hundreds of growing companies across the country and is calling on the government to reconsider the legislation and engage more closely with the business community before the Bill becomes law.
“We are lobbying MPs hard to look again at this legislation,”
McKenna added.
“There needs to be a balance between protecting employees and ensuring employers have the freedom to grow and compete. Without that balance, this Bill risks doing more harm than good to our economy. Like the hike in employers National Insurance contributions, this legislation could have a huge negative impact on the governments mission for economic growth.”
Downtown in Business will continue to campaign for a fairer, more flexible approach to employment reform—one that recognises the vital role of entrepreneurs and small employers in building a stronger, more dynamic economy.
