Columnist

Will the Employment Rights Bill cost too much?

When Labour came to power 16 months ago, their campaign message was clear: change. 

That promise is now being tested through one of the Government’s flagship policies: the Employment Rights Bill.

The bill aims to make work pay by strengthening worker protections, modernising employment conditions and ending exploitative practices.

For employees, the benefits could be significant. 

For employers, especially small and medium-sized firms, it raises concerns about cost, flexibility and extra red tape.

For the past year, the legislation has been subject to the familiar ping-pong of moving between the Commons and the Lords (which continues at the time of writing). 

Now, as the Chancellor prepares for her Autumn Budget, the bill is moving, albeit slowly, towards Royal Assent.

Findings from the North East Chamber of Commerce’s latest Quarterly Economic Survey show how businesses in our region are responding. 

When asked about the bill, 45 per cent said they were worried about additional costs or burdens; 41 per cent were neutral or unsure; and 14 per cent were supportive. 

On the potential impact, 44 per cent expect a negative effect; 44 per cent are mixed; and just 12 per cent see it as positive.

These figures reveal a clear sense of uncertainty, which is the enemy of investment and growth. 

To explore this further, the Chamber brought together regional employers for a roundtable discussion. 

Many voiced concerns about proposals to give trade unions greater freedom to organise, represent and negotiate on behalf of workers, as well as the planned repeal of the Strikes Act 2023, which will be among the first measures introduced.

As the bill nears completion, it is vital employers engage with the Government’s open consultations. 

Getting this right will mean finding a balance that protects workers while ensuring businesses can grow and compete. 

The goal must be to make work pay in a way that is fair, sustainable and productive for the North East economy.

Josh Maratty is a policy adviser at the North East Chamber of Commerce

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