Ministers scramble to reassure panicking businesses about workers’ rights package amid fear over red tape and soaring cost of flexible working and ‘right to switch off’ _ Hieuuk
Angela Rayner met leaders of some of the UK’s largest businesses today as she tried to tackle growing fears over Labour’s workers’ rights programme.
The Deputy Prime Minister and Business Secretary Jonathan Reynolds held a breakfast summit with bosses from firms including John Lewis, Sainsbury’s, McDonald’s and BT.
The reforms include a ban on ‘exploitative’ zero-hours contracts, bolstered sick rights and protection again unfair dismissal, and a presumption of flexible working unless it is unreasonable.
There will also be a ‘right to switch off’ outside of normal working hours.
Ahead of the meeting Ms Rayner promised that she would listen to businesses’ concerns in a sign that the party is keen to stop its relationship with the corporate world from turning sour.
The deputy PM said: ‘This government is pro-worker and pro-business, and we are committed to working with our brilliant businesses across the country to create a stronger, growing economy and to raise living standards as a result.’
The Deputy Prime Minister and Business Secretary Jonathan Reynolds held a breakfast summit with bosses from firms including John Lewis , Sainsbury’s , McDonald’s and BT.
Mr Reynolds said: ‘Our plan to make work pay will always be unashamedly pro-worker and pro-business and I’m determined to work in partnership with businesses and trade unions and ensure their voices are heard every step of the way.’
Yesterday fears were raised that firms face thousands of pounds in fines if they break Labour’s workers’ rights rules.
A new watchdog is set to oversee enforcement of the package, including the right to flexible working from day one.
But there have been concerns about the potential penalties that businesses could be hit with if they fall foul of the protections.
Ms Rayner has previously pledged that the Fair Work Agency will have ‘real teeth’ – although sources suggested that fines will only be imposed if there are abuses of the minimum wage.
Craig Beaumont, from the Federation of Small Businesses, told The Times: ‘We must prevent any changes that add risk to employment, as that’s a perfect storm that hits economic growth, wealth creation, jobs and worker participation all at once.
‘A public agency should not be fining UK small businesses thousands of pounds simply because they don’t provide formal corporate tick-box bureaucratic policies and paperwork. That overreach would (have) a devastating inadvertent consequence.’
Shadow business secretary Kevin Hollinrake said: ‘We absolutely deserved to lose at the general election, but business and the country does not deserve this.
‘Together with the rest of the tidal wave of regulations coming down the track, I can’t think of a better way to damage business confidence and stifle growth, business and job opportunities.’
