Ministers promise to protect small businesses in workers’ rights overhaul

Small business owners have been promised by ministers that their interests will be considered in the government’s overhaul of workers’ rights.
Angela Rayner, the deputy prime minister, and Jonathan Reynolds, the business secretary, told entrepreneurs and representatives of small companies that they would not be damaged by the new rules.
Labour outlined potential changes, including a “right to switch off” to limit out-of-hours contact from managers, in a pre-election document, but it has provided no details on the reforms since it took power.
The government says an employment rights bill will be tabled next month. Other rumoured changesinclude the right to a four-day week, a plan to make work “more family friendly”, a pledge to end “exploitative” zero-hours contracts and potential changes to the definitions of employment, worker and self-employment.
A contentious proposal for staff to get more rights on the first day of a new job is of particular concern to business owners. A higher minimum wage and greater employer pension contributions have also been discussed. Business groups have said that employers’ confidence has been damaged by rumours over the changes.
One of those present at the breakfast meeting said there had been a “lot of reassurance” that small employers would be a focus as the rules are drawn up and that representatives of small companies would be carefully consulted. However, they said there was “no detailed discussion” from Rayner and Reynolds of which policies were coming. Ministers held a similar meeting with larger employers last week.
Those at the breakfast included a publican, a restaurateur, a maker of Scottish preserves and the owners of a marketing agency and a construction business, along with the Federation of Small Businesses and the British Chambers of Commerce.
Concerns including the impact of employees getting the right to claim for unfair dismissal from their first day of employment on small companies were raised. As it stands, staff cannot claim for unfair dismisssal until they have been employed for two years.
Reynolds said: “Small business owners don’t always face the same challenges as big business, so it is vital we talk to them directly on policies that will impact them to ensure their feedback helps shape our plan.”
One of those present, Carly Cannings, founder of The Happy Business School, a consultancy, said: “There is a delicate balance to be struck between protecting the rights of employees and giving small businesses the ability to be agile , flexible and look after their business — and this was reflected in this morning’s conversation.”