Charles Martin: How Labour’s employment ‘Bill of Rights’ undermines enterprise

Charles Martin is a political advisor and policy researcher. He is reading law at the University of Exeter.

Labour’s flagship Employment Rights Bill is attempting to overhaul worker’s rights completely, with new measures such as “day one rights” and an overhaul on certainty around working hours. There is no doubt that the bill is well intentioned on the face of it, but look deeper into the incoming legislation and it is clear that it is riddled with measures which will undermine SMEs up and down the country. (This especially burdens our rural areas who employ 71 per cent of all workers in registered rural enterprises, compared to 42 per cent in urban areas.)

The bill fails to acknowledge the simple fact that not all businesses are the same; they vary in employment numbers, profit margins and structure. This makes implementing a “one size fits all” bill extremely detrimental for enterprise.

One of the most damaging effects of the bill is the increase in administrative tasks that enterprises will have to process. This seems to be a minor change for the good of employment rights, however smaller business with no established HR department may struggle disproportionately to their larger counterparts.

The simple fact is that Labour have no regard that this bill will disproportionately hinder businesses which are smaller in size; tarnishing the prospects of our local rural economies which depend on SMEs. It makes it clear that Labour are on the side of the unions, and it’s the Conservatives on the side of the entrepreneurs and businesses.

In a time where the Conservative Party is looking to renew the trust of the electorate, it is time we remember that we are the party of enterprise, innovation and economic prosperity: all three of these areas having been tarnished by mistakes of its last periods in government. By putting confidence in the public that starting a business is viable and that they will be rewarded for innovation, confidence in the Conservative Party would start to be restored, but this has to be earned.

There is no doubt that there is too much red tape surrounding business start-ups that makes it a more daunting prospect than one fuelled by optimism. Thatcher’s success in the 80s was down to the fact that she knew fuelling that optimism was essential, not just for our economy, but for the British people’s livelihoods.

A common mistake from the last periods of government was the lack of emotional appeal to voters in policies, and if there ever was any emotional appeal, it was not followed up upon. By igniting belief in business start-ups again, the country will not only find itself on the path to economic prosperity, but to an optimistic society that is fuelled by innovative individuals in our communities.

Approaching this policy area in the correct way is essential, however the underlining message should remain simple: reward those willing to take the risk of enterprise and be innovative in their industry. These are essential Conservative Party values which must be at the forefront of the parties’ agenda. As a party we have got to the point where our biggest selling point (economic prosperity and fiscal responsibility) has been tarnished, and there is no denying that most general elections are won on the economy which makes that emotional appeal to the electorate even more paramount.

By realising that boosting business confidence is an essential policy area to renew, we offer the choice to the electorate for real economic growth and prosperity. However the issue of trust still needs to be addressed to put the party in the position to actually deliver these plans.

When the electorate hear the words “promise” and “Conservatives”, they automatically regard whatever that pledge may be to be a lie – and for good reason. This is an extremely problematic place to be in for an opposition party where you cannot prove your promises with action. Under Kemi Badenoch the party has an opportunity to reflect on what went wrong and ensure that those mistakes are not made again.

The way to approach this task is by putting business on the forefront of the agenda and realising that is the biggest appeal of the party: sensible, though-out and pragmatic policies that drive business and make Britain into that optimistic nation once again.

Many within the party are understandably frustrated with the lack of policy announcements from the party, which has allowed Reform to run rampant at the local elections – but brash policy announcements are exactly how we found ourselves in this position. The Leader of the Opposition is right to take the approach of ensuring every policy announcement is a thought-out one, and it is this approach that will make the party a credible option once again.