Law‑Making May Be the Job Killer After All
Angela Rayner has introduced a new Employment Rights Bill that, according to a quick survival‑guide from the Federation of Small Businesses (FSB), is set to turn the recruitment engines of small shops into sluggish simmering pots.
What’s the “New” Law About?
Labour’s draft will bump up the difficulty of firing staff. In plain English — as soon as someone lands a job, they could launch a tribunal claim against their employer. If that’s the tune, the “tragic” idea is that owners might start treating the bench as a battleground.
The FSB’s Take
When the FSB ran the numbers, 67 % of its members say they’ll hire fewer people and 32 % will actually cut staff. That’s a staggering order of business‑wide absenteeism.
Bottom Line
- Recruitment throttles: 40% (≈3/7) of members are stepping back on hiring.
- Staff cuts: About a third will trim their teams.
- Call to action: The FSB wants the government to keep the one‑year “qualification” window so businesses can grow without the fear of instant tribunals.
In short, the FSB is pleading: “Don’t throw a wrench in the machine of small‑business growth, or we may lose many jobs in the process.”
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Hear ye, hear ye! The Financial Services Board (FSB) pulled back the curtain and the results are nothing short of a business “Oops!” Panic. A whopping 56 % of small‑fry enterprises report they’ll either halt new investments or trim back to rubber‑neck levels because of the Labour Bill that feels more like a tax nightmare than a growth spell.
What the FSB’s Policy Chair, Tina McKenzie, has to say
- “Small firms are shouting, ‘This Bill won’t get us to hire more!’ Their feedback is loud, clear, and, frankly, relentless.”
- “Ministers should listen, not just spin their policy wheels. The economy is not a playground for a ‘war on work.’”
- “If businesses fear lawsuits, hiring goes to the gym—not the office. That bounces the benefits bill higher and drags living standards down.”
- “The Bill will severely dent the real economy. Those left job‑shore should get a better deal from the government.”
Suggested Fix: Rewind the Dreaded Rules
McKenzie proposes tucking out new “day‑one dismissal” clauses and rolling back to the one‑year qualification period of the previous Labour era. “A cost‑free, balanced route for the PM to show he gets the gravity of job creation and sustenance,” she says.
Bottom line for the party‑politics rang
- Stop the loss‑take on small business optimism.
- Re‑evaluate the “possible lawsuit” risk that screws hiring intentions.
- Whip the Bill into shape—think of it as a recipe that needs a pinch of fairness.
