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92% of employers 'concerned about Employment Rights Bill'

January 09 2025

A survey carried out by the Federation of Small Businesses (FSB) has suggested that nine in ten small employers have concerns about measures included in the Employment Rights Bill.

92% of small employers are worried about the Bill, according to the FSB. 67% say that they plan to recruit fewer employees, and 32% said that they will reduce headcount.

The business group said that one of the main concerns cited by small firms are the changes outlined in the Bill to unfair dismissal legislation, which would expand the grounds for employees to take their new employer to a tribunal from their first day in the job.

The FSB has urged the government to scrap parts of the Bill and return to the one-year qualifying period in place under the last Labour government.

Tina McKenzie, Policy Chair at the FSB, commented: 'Small firms have made it crystal clear that the Bill will not motivate them to hire more whatsoever. Their feedback is emphatic, resounding and overwhelming.

'Ministers must show they get the risk to jobs and avoid a cavalier, dogmatic or patronising approach to the loud and clear feedback from small businesses. The economy is in no fit state for a 'war on work'.'

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