In Principal, the Employee Rights Bill sounds like a great idea. There are a lot of unscrupulous employers and many workers, particularly in lower paid roles, have little to no security.
However, I question that this is another policy of which the consequences have not been considered. While I say that there are a lot of unscrupulous employers, the majority are not. Bearing in mind that most of the UK workforce is employed in the SME sector, within which there are a majority of scrupulous employers hard hit, repeatedly, by successive Governments, this is another huge pressure to bear.
I believe that this is another policy that will become counter-productive. Many businesses simply cannot afford to take the risk of legal action for underperforming employees.
As a result, we think that many businesses will move to short term or temporary contracts, maybe 3 monthly with the option to renew. IR35 will come into play but this is an easy option reducing costs and liability for employers that simply cannot afford the risk of offering full time employment contracts. On “contract” work, notice periods can be substantially reduced, taxation becomes the responsibility of the employee or IR35 Umbrella, no employer NI contributions and overall, much less risk.
This policy would stand a better chance of success following broad public consultation in the SME sector. A bill of rights that was fair to employers and employees is not impossible but it is certainly not what is in place now.
A real solution to create a harmonious relationship between Government, Business and Employees based on public consultation would be a real solution to a growing problem and stifled growth.
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