Clear majority of employers think the government’s workers’ rights plans will benefit their business, new polling shows

A clear majority of employers think the government's workers' rights plans will benefit their business, finds new polling from IPPR, the TUC and Persuasion UK.  

The polling, conducted by Opinium, found widespread optimism among senior decision-makers and middle managers - at small, medium and large companies- about key policies in Labour's forthcoming Employment Rights Bill.  

The findings demonstrate how the people who make management decisions within businesses, and who engage most frequently with employees, feel optimistic about the impact of Labour's Make Work Pay agenda.  

Managers are positive about a wide range of the government's proposals, including:  

• Introducing day one rights: A significant majority of managers (66 per cent) think giving employees protection from unfair dismissal and parental leave on the first day of employment would have a positive impact on their business. By contrast only 10 per cent thought day one protection from unfair dismissal protection would impact negatively – and there were similarly low levels of negativity around parental leave (12 per cent).  

• Access to sick pay: Managers overwhelmingly (66 per cent) think giving all workers access to sick pay from the first day of their illness will be good for their business with just 12 per cent opposed.  

• Banning zero-hours contracts: By a margin of over six (64 per cent positive) to one (10 per cent negative) managers thought that a ban on zero-hours contracts would have a positive impact on their business.  

• Raising the national minimum wage to a real ‘living wage': Seven in 10 managers (70 per cent) believe that raising the national minimum wage to reflect living costs would have a positive impact on their business, compared to only 12 per cent who predict a negative impact.  

• Making it easier for trade unions to achieve recognition: More than half of managers (56 per cent) think that making it easier for unions to achieve recognition and collectively bargain with employers would have a positive impact on their business, compared to just 12 per cent who thought the impact would be negative. 

The main reasons managers give for backing the government's workers' rights plans are that the changes will:  

• Make employees healthier, happier and more engaged.   

• Provide employees with more security and predictability in their life.  

• Bring wider benefits to their businesses and the economy.   

The findings back up recent polling from IPPR, the TUC and Persuasion UK which found that an overwhelming majority of employers thought stronger workers' rights would lead to better productivity and profitability at their companies.  

The results also demonstrate broad optimism about the government's policies among managers in sectors which are likely to be more impacted by the changes like hospitality and retail, where levels of pay for workers are generally lower and levels of employee insecurity are higher than in other sectors of the economy.  

For example, over six in ten (63 per cent) Hospitality, Leisure and Food employers say day one protection from unfair dismissal will have a positive impact on their business – compared to just 15 per cent who think it will be negative.  

And a similar number (59 per cent) think day one sick pay and banning zero-hours contracts will also be beneficial.  

Meanwhile, among retail employers well over a half (57 per cent) think introducing protection from unfair dismissal from day one will have a positive impact on their business, compared to just 22 per cent who think it will impact negatively.  

And by a margin of over five (63 per cent positive) to one (12 per cent negative) retail employers think banning zero-hours contracts will be good for their businesses.  

Paul Nowak, general secretary at TUC, said:    

“Driving up employment standards is good for workers and good for business. Most managers understand that if you treat your staff well they will perform better.  

“It is vital the government's plan to Make Work Pay is delivered in full, including through the forthcoming Employment Rights Bill.  

“The Conservatives presided over a huge explosion in insecure work that has been terrible for workers' livelihoods and business performance.  

“Creating a basic floor of rights and protections will stop decent employers from being undercut by the cowboys.”  

Dr George Dibb, associate director for economic policy at IPPR, said:   

“Managers across different industries recognise the value of a workforce that feels secure and supported. The government's proposals to strengthen employment rights, from day one protections to banning zero hours contracts, aren't just good for workers — they're good for businesses and a growing economy too.   

“Forward-thinking managers know healthier, happier employees result in stronger, more resilient companies."  

Steve Akehurst, director of Persuasion UK, said:   

“Perhaps surprisingly businesses and the public are united in supporting enhanced workers' rights. In fact, it is one of the government's most popular policies. Anyone who says differently is simply out of step with the rest of the country". 

James Crouch, head of policy & public affairs, said:  

"These proposals have seen a breadth of support amongst decision makers and managers in businesses of all sizes. 

“All of the proposals in the 'New Deal for working people' saw relatively substantial levels of support, and many managers feel that there will be tangible benefits to their own workplace too.”  

ENDS   

NOTES TO EDITORS   

1. Opinium conducted an online survey among 1,000 middle managers and senior decision-makers with a focus on HR and recruitment in businesses with 10 or more employees. Fieldwork was carried out between 6th and 21st August 2024. These were conducted through a bespoke approach, recruiting DMs from two specialist business panels and the B2B subset on Opinium's proprietary UK panel. All data has been checked to ensure results are consistent across all sample sources. This allows us to corroborate the overall findings, alongside all usual data checks that are included as standard within market research studies.   
2. Underlying data for the polling conducted by Opinium is available under embargo on request.
3. IPPR (the Institute for Public Policy Research) is an independent charity working towards a fairer, greener, and more prosperous society. We are researchers, communicators, and policy experts creating tangible progressive change, and turning bold ideas into common sense realities. Working across the UK, IPPR, IPPR North, and IPPR Scotland are deeply connected to the people of our nations and regions, and the issues our communities face. We have helped shape national conversations and progressive policy change for more than 30 years. From making the early case for the minimum wage and tackling regional inequality, to proposing a windfall tax on energy companies, IPPR's research and policy work has put forward practical solutions for the crises facing society. www.ippr.org    
4. Persuasion UK is an independent non-partisan, not-for-profit research initiative which aims to understand what's shaping public opinion on the issues that will define the next decade of public policy. We study the narratives, messengers and experiences which are moving public opinion now - and those which have the potential to do so in the future: https://persuasionuk.org/