The news that the employment rights reforms could cost businesses up to 5 billion a year was not welcomed by small businesses. However, with the right preparation, small businesses can harness the benefits of the reforms without significantly increasing their spending.
In the analysis, the government acknowledges the additional costs to businesses but believes this is justified by better work-life balance and wider social and economic gains. In 2023/2024, around 17 million workdays were lost because of stress, depression or anxiety and the latest statistics suggest that around 9.25 million people between the ages of 16 – 64 are economically inactive. The government hopes that by extending employee protections, they will reduce these figures and promote growth.
The changes introduced by the Employment Rights Bill are broad and are likely to affect every small business in some way. However, some changes such as reforms to zero-hours contracts and shift work are likely to have more of an impact on certain industries such as hospitality or social care. Businesses should carry out an audit of their current contracts, policies and practices to understand which changes will impact their working arrangements so that they can take targeted steps toward compliance. By identifying gaps now, they can implement small changes over time...
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