This article is from the source 'bbc' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.bbc.com/news/articles/cvgdgx8vze8o
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
New workers' rights to cost businesses £5bn a year | New workers' rights to cost businesses £5bn a year |
(about 1 hour later) | |
Labour's plans to upgrade workers' rights will cost businesses up to £5bn a year to implement, according to the government's own analysis. | Labour's plans to upgrade workers' rights will cost businesses up to £5bn a year to implement, according to the government's own analysis. |
The new measures would have a disproportionate impact on smaller businesses, responsible for employing 13 million workers, the impact assessment report found. | The new measures would have a disproportionate impact on smaller businesses, responsible for employing 13 million workers, the impact assessment report found. |
However, the £5bn represented a "modest" amount, less than 1.5% of the total amount spent by businesses on employing staff, the report said. | However, the £5bn represented a "modest" amount, less than 1.5% of the total amount spent by businesses on employing staff, the report said. |
Moreover, the "wellbeing" benefits of the measures, which include challenging the use of zero hours contracts and boosting sick pay, would amount to £3bn, it found. | Moreover, the "wellbeing" benefits of the measures, which include challenging the use of zero hours contracts and boosting sick pay, would amount to £3bn, it found. |
The economic assessment report was prepared for MPs ahead of the second reading of the Employment Rights Bill on Monday. | The economic assessment report was prepared for MPs ahead of the second reading of the Employment Rights Bill on Monday. |
The government says the legislation represents the biggest upgrade to workers’ rights in a generation. | The government says the legislation represents the biggest upgrade to workers’ rights in a generation. |
It would guarantee new rights for workers from the first day of their employment including: sick pay, protection from unfair dismissal, parental and bereavement leave. | It would guarantee new rights for workers from the first day of their employment including: sick pay, protection from unfair dismissal, parental and bereavement leave. |
It also proposes banning what it calls "exploitative" zero hour contracts and strengthening trade union rights. | It also proposes banning what it calls "exploitative" zero hour contracts and strengthening trade union rights. |
However, the report warns that the additional costs could lead to employers cutting their workforces, which could in turn ‘’weigh’’ on economic growth, the government's stated policy priority. | However, the report warns that the additional costs could lead to employers cutting their workforces, which could in turn ‘’weigh’’ on economic growth, the government's stated policy priority. |
Ben Smith, from specialist employment law firm GQ|Littler, said it would be "painful" in the short term for businesses trying to cope with the extra red tape, while the longer term positive outcomes were harder to quantify. | Ben Smith, from specialist employment law firm GQ|Littler, said it would be "painful" in the short term for businesses trying to cope with the extra red tape, while the longer term positive outcomes were harder to quantify. |
Tina McKenzie, policy chair at the Federation of Small Businesses said: "As bad as these impacts seem, they still underestimate the real costs this legislation could have on growth and participation." | Tina McKenzie, policy chair at the Federation of Small Businesses said: "As bad as these impacts seem, they still underestimate the real costs this legislation could have on growth and participation." |
Paul Nowak, general secretary of the TUC, said the government's assessment showed the business costs from the Bill were negligible and more than offset by wider economic and social gains. | Paul Nowak, general secretary of the TUC, said the government's assessment showed the business costs from the Bill were negligible and more than offset by wider economic and social gains. |
“These changes will mostly affect those companies whose business models have been built on low-paid, insecure employment. | “These changes will mostly affect those companies whose business models have been built on low-paid, insecure employment. |
“Decent employers will welcome these measures and the improvements they will bring for their businesses and workforces,” he said. | “Decent employers will welcome these measures and the improvements they will bring for their businesses and workforces,” he said. |
The report argues that the reforms could lead to fewer lost workdays, if employees feel less anxious about their pay and working conditions. | The report argues that the reforms could lead to fewer lost workdays, if employees feel less anxious about their pay and working conditions. |
Quoting Health and Safety Executive figures, the report says depression, stress and anxiety led to 17 million working days being lost last year, costing the economy £5.2 billion in lost output. | Quoting Health and Safety Executive figures, the report says depression, stress and anxiety led to 17 million working days being lost last year, costing the economy £5.2 billion in lost output. |
Workers in the hospitality, health and social care, and retail sectors were set to benefit most, the report said, where insecure and low-paid work is more common. | Workers in the hospitality, health and social care, and retail sectors were set to benefit most, the report said, where insecure and low-paid work is more common. |
Under the proposed legislation, employers that currently use zero hours contracts would have to offer staff contracts guaranteeing a set number of hours per week. That will be calculated based on the worker's average working hours over a 12-week period. | Under the proposed legislation, employers that currently use zero hours contracts would have to offer staff contracts guaranteeing a set number of hours per week. That will be calculated based on the worker's average working hours over a 12-week period. |
Around two million workers were set to benefit from the reforms, the report said, including a £400m a year increase in sick pay due to reforms to Statutory Sick Pay. | Around two million workers were set to benefit from the reforms, the report said, including a £400m a year increase in sick pay due to reforms to Statutory Sick Pay. |
Get in touch | |
How will these plans affect you? Get in touch. |