Thursday 10 October 2024

Karim Fatehi MBE, CEO of the London Chamber of Commerce and Industry (LCCI) said: 

“The Employment Rights Bill is a vital step toward enhancing job security and predictability for workers, particularly in London, where insecure work arrangements like zero hours contracts are prevalent. Given the city's role as a global economic hub, the Government’s focus on improving worker stability is essential, especially in addressing stagnant real wages and ensuring that London’s workforce can meet the city’s high cost of living. The Bill will support economic growth and build a more resilient labour market in the capital which will benefit all of the UK.

“Since the pandemic, we have seen significant changes to working practices both nationally and globally, including the rise of hybrid and remote working. We are pleased that this Bill recognises that shift, whilst at the same time promising to balance the needs of workers with the needs of employers.

“However, while we welcome efforts to improve worker protections, we are concerned that the Bill could weaken London’s competitiveness in global markets by removing the 'qualifying time' provision. Many businesses could now face challenges in terminating contracts, resulting in expensive and burdensome processes that negatively affect both employers and employees.

“Additionally, regarding the proposed ban on zero hours contracts, we share the view that many employers use them responsibly and that there is a clear demand for such contracts among certain segments of the workforce. While greater structure and guidance on their use is necessary, a blanket ban may undermine the flexibility that both London’s businesses and workers rely on. It is crucial to preserve this flexibility to benefit the unique needs of the capital’s dynamic economy.

“We hope that the Bill delivers the Labour Government’s pledge to bring an end to the industrial disputes that have crippled London’s economy in recent years, by repealing the Minimum Service Levels Act.

“We now need clear guidance from the Government on the next steps in its reforms, including ensuring that possible guidelines for workers on 'switching off' do not follow a 'one-size-fits-all' approach. Any new policy around this matter, whether legal or advisory, will have varying effects depending on the purpose, size and sector of a business and it is only sensible that the government takes this into account.

"Only time will tell if the legislation will deliver on its promise to be ‘pro-business, pro-worker’."

ENDS