67 FSB Small businesses are clear: the proposed Employment Rights Bill will do more harm than good. Across the country, small business employers have raised alarms over how the Bill will affect their ability to hire, grow and keep people in work. Now, the Government must listen to that. Research from the Federation of Small Businesses (FSB) paints a concerning picture. A staggering 92 per cent of small business employers have concerns about the Bill. These are not abstract worries – they are grounded in the realities of running a business. Among those concerns are changes to unfair dismissal rules. Expanding grounds for employees to take their employer to a tribunal from day one of employment sends a chilling message to those who create jobs. Our survey shows just how severe the consequences could be: • 67 percent say they’ll have to hire fewer people. • 56 percent plan to cancel or scale back investment and growth plans. • 32 percent expect to reduce their staff team before these measures take effect. The knock-on effects will ripple across the economy, particularly hitting those already struggling to find work. Small business employers are telling us they’ll have to rethink their hiring practices entirely, with 87 per cent planning changes. Twothirds say they’ll have to avoid taking on people with poor work histories, and a third will avoid hiring those who’ve been out of work altogether. A thriving jobs market depends on opportunities being open to everyone. If small business employers are forced to close the door on those with limited experience, we’ll see a rising benefits bill and worsening inequality. A cavalier approach to employment law, driven by dogma rather than evidence, will lock people out of work and undermine small business employers’ ability to grow. If employers feel they are taking on unreasonable legal risk with every new hire, they simply won’t hire. There is an alternative. Under the last Labour Government, a one-year qualifying period for unfair dismissal claims was in place. Reinstituting this would improve rights at work, while protecting jobs and avoiding unnecessary strain on businesses. At a time when the economy is fragile, the Government should be doing everything possible to support job creation and growth. If we want employers to take chances on people, especially those out of work or with less experience, we can’t make the risks too great. The Employment Bill will do more harm than good, says Tina McKenzie, FSB Policy Chair MORE HARM THAN GOOD ABOUT FSB As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.
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