Employment Rights Bill Under Fire: MPs Warn of Rising Costs and Red Tape
Posted by Emma on 13th Mar 2025 Reading Time:
According to concerns of Conservative MPs, the Employment Rights Bill, currently making its way through Parliament, could impose significant financial and regulatory burdens on businesses.
During the first sitting of the report stage at the House of Commons on 11 March, Conservative MP Greg Smith argued the Bill fails to "strike the right balance" between protecting employees and preserving necessary flexibility for employers. Smith criticised the Labour government's approach as overly prescriptive, describing it as a "statist, top-down, 'government knows best' approach" that could negatively affect workers and businesses.
The Employment Rights Bill aims to restrict zero-hours contracts by ensuring guaranteed hours and protections, potentially shifting employment dynamics significantly. Justin Madders, Labour MP for Ellesmere Port, highlighted the need to prevent employers from circumventing zero-hours contract restrictions by increasing reliance on agency workers.
However, Conservative MPs have warned that such measures might inadvertently disadvantage certain workers who prefer flexible contracts. Smith emphasised the importance of flexibility for students and seasonal workers, asserting that "flexibility works for many employees on zero-hours contracts."
Fellow Conservative MP James Smith echoed this sentiment, stating that staff often highly valued flexible employment arrangements. He criticised the government's "top-down" approach, suggesting it could make employment overly rigid and potentially discourage employment.
UKHospitality previously raised similar concerns, urging policymakers not to ban zero-hours contracts outright but rather to preserve employee choice. The sector argues that flexibility is beneficial for both employers and employees in certaincontexts.
The Employment Rights Bill also faces criticism due to the anticipated £320 million in administrative costs, which MPs suggest could be significantly underestimated.
As the bill progresses, debate continues to find an appropriate balance between protecting employee rights and maintaining a dynamic, flexible employment market that is crucial to various sectors.