Yahoo Finance I fear Labour's Employment Rights Bill will stifle business growth not nuture it
Business secretary Jonathan Reynolds’ published detail on the proposed Employment Rights Bill is a harsh reminder of the growing disconnect between our policymakers and business owners.
As co-founder and CEO of a British technology company, the impact these new measures could have on our industry and the wider business community concern me greatly.
One of the most alarming aspects is the introduction of the right for all employees to request a four-day working week. Whilst it may sound appealing on paper, the reality for business owners is quite different.
This initiative threatens to introduce significant logistical challenges for companies like ours. The need to maintain adequate coverage across all working days will likely force businesses to hire additional staff, pushing operational costs higher.
These increased expenses will inevitably be passed on to customers, ultimately forcing UK businesses to be less competitive both domestically and globally.
The concept of cramming five days’ worth of work into four does not translate into greater efficiency or productivity.
Many businesses do not operate on a rigid schedule that can easily accommodate such changes. The pressure to have employees work earlier or later simply to meet the new guidelines creates unnecessary disruptions, leading to wasted hours andincreased inefficiencies.
In a technology-driven world where global competition is fierce, these changes make little economic sense and could put UK firms at a distinct disadvantage compared to international rivals who are not bound by red tape.
The Government’s well-intentioned but misguided push for worker-centric policies also misses a crucial point: flexibility for businesses is paramount in today’s interconnected, global marketplace.
UK companies already face stiff competition from international firms, particularly inoutsourcing-heavy industries where large contracts are won based on costefficiency and flexibility.
Additional employment restrictions will only make it harder and could lead to a decline in contract opportunities, especially when competing against global giants inregions like India.
The Bill’s abandonment of the right to switch off is a small relief. For companies like ours, operating globally means working across different time zones, particularly with the US.
A blanket right to disconnect would have made facilitating international contracts nearly impossible without a significant rise in operational costs. Our clients and partners expect timely responses regardless of UK business hours, and in a global economy, rigid policies like these would hinder our ability to meet those expectations.
While workers’ rights are undeniably important, this Bill fails to strike the right balance. It feels like a step towards a more restrictive, union-driven environment, which will stifle business growth rather than nurture it.
UK companies need policies that promote innovation, flexibility, and competitiveness—without these, we risk losing ground in an increasingly challenging global marketplace.
As a UK business man and entrepreneur, I urge the government to rethink these proposals. They may sound good on paper, to those who don’t own or run a business. They may even work for the civil service, union-based or large UK centric organisations. But none of those are the lifeblood of the UKeconomy.
In practice, they will make it harder for UK businesses to thrive. I am not asking for a free pass on employment laws, but for a fair and pragmatic approach that allows us to grow, compete, and contribute to the UK’s economic success. Without this, the cost will not only be felt by businesses but by the economy as a whole.
The UK economy has always been, and always will be driven by SMEs, and these proposed changes don’t support them. Add to that the threat of what is rumoured to be coming in the October budget and I think we can safely say this has not been the “business-friendly” start to a Government that Labour promised.
Michael Queenan is CEO of Nephos Technologies
