Taking a deep dive into how changes will affect firms
Date published:
The Chamber’s latest column for The Journal by Marianne O’Sullivan, policy manager.
The government is reforming employment rights as part of its proposals for a New Deal for Working People.
Following the recent publication of the Employment Rights Bill, which is the first stage of introducing a number of new workplace rights, the government has committed to work in partnership with businesses, trade unions and civil society to shape the next steps.
These reforms include changes to zero hours contracts to ensure rights to guaranteed hours, day one protection over unfair dismissal for workers, excluding probation periods, and strengthening day one rights to request flexible working.
As well as employment rights in the recent Budget, the government announced that the minimum wage for over 21s will rise by 6.7%to £12.21 from April 2025. There has also been rate rises for 18 to 20-year-olds to £10 and apprentices to £7.55 an hour.
The North East Chamber has been working with chambers across the country and the British Chambers of Commerce nationally to provide feedback from employers.
We held a roundtable last week with North East Mayor Kim McGuinness, regional MPs and multi-sector businesses to give our members the opportunity to inform the new government’s thinking in this important area for modern business.
We know that tackling insecure work and in-work poverty is essential in reducing the current levels of child poverty in the North East. This is a key element of creating a stronger, fairer economy in the North East.
But we know that businesses will face challenges around increased wages, the administrative burden of employment rights changes and increased National Insurance costs. Many charities and not for profits are also impacted by the rises in National Insurance and increased cost pressures.
We will be using feedback from our members following the Budget and from our roundtable with members to highlight to government the practical implications of these reforms on businesses and how this will impact key areas such as recruitment and retention, as well as security and pay.