Fears grow over Workers’ Rights Bill as small firms warn of job cuts

Small companies across the United Kingdom urge the government to expand the proposed employment rights bill, warning that comprehensive changes may hinder employment and cause widespread work losses.

The Federation of Small Companies (FSB), which represents thousands of employers throughout the country, claims that plans – including the expanded reasons for the unfair semester and automatic pathological wages from the first day – “will re -chaos on our fragile economy already.”

In a survey of 1,270 members, two -thirds of small companies said that they would be free or freezing in recruitment if the bill is passed in its current form, while a third predicted that it would reduce the number of employees present before the measures enter into force. Tina McKenzi, FSB policy head, says that allowing employees “to prosecute employers in their first day in the job” risk opening the door to “trivial claims”, especially during the economic climate where many companies feel exposed.

The government has mentioned the draft employment rights law as “the largest upgrade to work rights for one generation.” It includes removing the two -year qualifying period to protect the unfair separation and providing new rights for pathological wages from the first day of work. While some employers and senior unions welcomed the moves, FSB believes that they may mean more legal uncertainty for smaller institutions and urged the Prime Minister to return to a period of one -year qualifying, as well as a discount on the costs of legal pathological wages.

FSB fears come amid tense relations between business groups and government after the last fall budget, which provided an increase of 25 billion pounds in employment taxes. Other industrial footage reflect an increased warning: a FSB poll found that 32 percent of small companies planned to reduce employees in the last quarter of last year, with only 10 percent of mind before. Meanwhile, the Carted Institute of Employees and Development (CIPD) has informed that one in four companies intends to provide repetition or slow the employment campaign.

MCKENZIE warns that “reckless changes” may prevent companies from employment: “If communication with employees becomes a legal minefield, companies will simply stop. This means more people on the benefits, a conflicting luxury bill and a devastating structure of living levels.”

The Ministry of Business and Trade has yet to comment on FSB assurances. However, the government confirms that stronger guarantees and expanded entitlements will support workers' rights without putting pressure on employers. With the progress of the law through the House of Commons, small companies will see closely to see if any amendments reduce their fears related to escalation.