Guido can reveal that the Employment Rights Bill – whose amendments are being considered in the Lords today – will have an outsized impact on small and medium sized enterprises. SMEs are dreading the legislation…
A survey of 500 SMEs conducted by FTI Consulting shows the extent of the impact:
- 62% of microbusinesses are not aware or vaguely aware of the bill. And therefore won’t be able to prepare for it…
- 80% are concerned about overall increased employment costs in addition to recent tax increases.
- 74% are concerned about significant new rights for trade unions to gain access and control in the workplace. Massively empowered by the bill…
- 66% say the trade union rules in the Employment Rights Bill place a disproportionately heavy burden on small and medium businesses compared to large firms.
All that will slow down trading among SMEs:
- 82% say it is likely they will recruit more cautiously.
- 73% say it is likely they will put recruitment plans on hold.
- 71% say it is likely they will increase prices to customers/clients
- 59% say it is likely they will reduce headcount if the trade union provisions were applied to their business
On those grounds three quarters of SMEs say there should at least be a delay of two years prior to the implementation of the bill’s provisions. As costed by the Growth Commission this morning…
