The rejection of proposed amendments to the government’s Employment Rights Bill risks creating unnecessary barriers to growth and worsening conditions in the UK labour market, according to the Association of Professional Staffing Companies (APSCo UK).
Samantha Hurley, Managing Director at APSCo UK, described the decision as “disappointing” and said recruitment experts and business leaders had been ignored despite raising concerns about the Bill’s impact.
“The Employment Rights Bill is, without doubt, one of the most significant and large-scale changes to employment legislation that today’s recruitment leaders and businesses have seen. It will shake up hiring as we know it, but not all of the changes are relevant and necessary,” she said.
Hurley added that while reform was required to reflect the evolution of modern work, the current format of the Bill failed to take a “tailored approach” that balanced the needs of workers with those of employers.
“Different workers need nuanced safeguards and some need far more freedom and flexibility. The current format of the Bill risks creating barriers for employers both financially and in terms of access to critical talent. Protection in employment should go both ways – for the individual and those hiring them. At the moment, businesses and recruiters are set to be hindered by the plans, which will only inadvertently impact the labour market as available jobs continue to dwindle further.”
The Employment Rights Bill, billed by ministers as the most significant overhaul of workplace regulation in decades, is progressing through Parliament with measures that include protections against unfair dismissal, a ban on exploitative zero-hours contracts, and enhanced rights to flexible working.
Industry groups, however, have repeatedly warned that the reforms risk imposing further costs and complexity on employers at a time when the UK labour market is already cooling.
APSCo UK, which represents the professional recruitment sector, has urged the government to engage more meaningfully with staffing experts to ensure the Bill does not unintentionally stifle hiring and growth.
Hurley said compromise was to be expected as the details are finalised but warned that ignoring expert advice risked undermining the government’s aims.
The rejection of amendments comes as other leading business groups, including the Institute of Directors (IoD) and the Confederation of British Industry (CBI), have raised similar concerns about the Bill’s potential impact.
Both organisations have pointed to the combination of higher employment costs, such as the rise in National Insurance Contributions and above-inflation increases to the minimum wage, as creating a “perfect storm” for employers already cautious about hiring.
APSCo UK said it would continue to engage with ministers to push for reforms that balance protection for workers with flexibility for businesses to thrive.