An impact assessment published today (Monday) by the Department
for Business and Trade confirms that that government's Employment
Rights Bill will bring real and substantial benefits to workers,
business, and the wider economy.
Impact on workers
The impact assessment sets out that ten million working people
across the country will directly benefit from the overhaul of
workers' rights. Their jobs will become more secure, the quality
of their work will improve and they will directly gain as their
incomes rise.
The package is “expected to benefit people in work with the
protected characteristics that are disproportionately represented
in low pay, low quality, unsecure jobs”. These include low-paid
women, younger workers, ethnic minority workers and disabled
workers.
The impact assessment shows that the impacts of the Employment
Rights Bill will result in direct financial gains for low-paid
and insecure workers.
Impact on economy
The impact assessment sets out the positive economic impacts the
package will deliver, recognising it will be “significantly
positive for society” and that it is likely to have net positive
impacts for growth.
The analysis suggests these include improved workforce health and
wellbeing; increased economic activity rates; improving equality;
improved industrial relations; and higher productivity.
It says “workers who feel more confident in their finances due to
better income security may spend more” which would be good for
local economies.
These benefits will support the government's Mission for Growth”
helping to “raise living standards across the country and create
opportunities for all.”
Impact on business
The impact assessment states costs to business will represent
just under 0.4% of total employment costs across the economy,
which are more than offset by substantial wider economic and
social gains.
The majority of this will be transferred directly into the
pockets of workers – helping raise living standards and give
people more money to spend.
The impact assessment says there will be further benefits to
employers from “improved wellbeing and health” with 17.1 million
working days lost due to stress, depression or anxiety in 2022/23
- the equivalent to over £5 billion of lost output.
And businesses will also benefit from the bill tackling the
undercutting that good employers currently face when trying to do
the right thing.
TUC General Secretary Paul Nowak said:
“This impact assessment confirms that the Employment Rights Bill
is good for workers, good for business and good for the wider
economy.
“Driving up employment standards will boost living standards,
productivity, and growth. That's why the vast majority of
managers support these plans.
“Most employers in this country treat their staff well and do not
use exploitative practices like zero-hours contracts and fire and
rehire.
“By levelling the playing field on workers' rights and
protections this bill will give people more predictability and
control over their lives. And it will stop decent firms from
being undercut by the bad.
“These reforms will improve the health of our workforce, bring
real economic gains and ensure working people share fairly in the
gains of growth.”
Commenting on the impacts for business, Paul
added:
“Despite repeated attempts to paint this bill as bad for
business, this rigorous impact assessment shows that the business
costs are negligible and are more than offset by the wider
economic and social gains.
“These changes will mostly affect those companies whose business
models have been built on low-paid, insecure employment.
“Decent employers will welcome these measures and the
improvements they will bring for their businesses and
workforces.”
Polling published in
September revealed that a clear majority of small, medium, and
large employers support the government's plans:
-
Retention: Seven in 10 (74 per cent) believe
that strengthening employment rights will improve workforce
retention, compared to just 6 per cent who do not.
-
Productivity: Seven in 10 (73 per cent) say
strengthened employment rights will boost productivity,
compared to just 7 per cent who disagree.
-
Profitability: Six in 10 (61 per cent) think
stronger employment rights will have a positive impact on
business profitability, compared to fewer than two in 10 (17
per cent) who disagree.
-
Job security: Six in 10 (60 per cent) said
that employees should have more security at work, compared to
just 3 per cent who think they should have less.
-
Workforce health: Seven in 10 (75 per cent)
think that strengthened employment rights will improve employee
health, compared to just 4 per cent who disagree.
ENDS
Notes to editors:
- A full set of the assessments can be found
here: Employment Rights Bill: impact
assessments - GOV.UK
