Business Secretary Peter Kyle has signaled potential concessions on the Government's Employment Rights Bill to secure its passage through Parliament and address business concerns about regulatory costs.
Speaking at the Confederation of British Industry (CBI) conference, Kyle said he would "do what it takes to get it through" the parliamentary stand-off over the legislation. The bill is caught in a deadlock between peers and MPs over measures banning "exploitative" zero-hours contracts and granting workers protection against unfair dismissal from their first day in a job.
Kyle emphasized extensive consultations would precede implementation. "Our manifesto committed us to consult, to listen, and that's what I'll do," he told reporters at the conference. The primary legislation commits him to consult in 26 different areas.
Defense Against Business Fears
Seeking to reassure firms, Kyle insisted the legislation was not a "zero sum" game where either workers or employers lose out. "I will not pit employer against employee or employee against employer," he said.
He acknowledged frustration that businesses were projecting their "worst fears" onto areas still subject to consultation. "In the world we're living in now, the workplace is fundamentally different than it was 10 and 20 years ago," Kyle argued. "The law has to keep up, regulation has to keep up."
Tory Leader's Sharp Critique
Tory leader Kemi Badenoch condemned the legislation in her CBI speech, calling it a "pure political project" that "destroys growth." She said: "If 26 consultations are what you need to fix it then you have a really, really big problem."
Badenoch urged Chancellor Rachel Reeves to kill the bill, calling it "the cheapest pro-growth measure in the Red Book." She warned the right to claim unfair dismissal from day one means new hires could lodge tribunal claims "before they've even worked out where the toilets are."
The Tory leader suggested firms might turn to artificial intelligence instead of hiring under the new rules.
Business Leaders Push Back
CBI boss Rain Newton-Smith called on the Government to change course, claiming businesses had not been listened to. "Lasting reform takes partnership – not a closed door," she said, describing the lack of "meaningful change" to the legislation as "disappointing, and it's damaging."
Internal government analysis estimates the bill will cost firms £5bn. The Office for Budget Responsibility said earlier this year it would have a "net negative" effect on public finances.
Note: This article was created with Artificial Intelligence (AI).
