Small businesses demand workers’ rights sick pay rebate
Small business owners would continue hiring new staff despite fears around the government’s workers’ rights package if it contained a rebate on the overhaul’s new sick pay rules.
According to a poll by the Federation of Small Businesses (FSB), 35 per cent of entrepreneurs and small business owners believe that a rebate for their firms over sick pay would make them to employ more people currently out of work.
The government is promising the biggest overhaul of workers’ rights in a generation with its Employment Rights Bill currently making its way through the House of Lords. Other flagship changes within the package include outlawing ‘exploitative’ zero-hours contracts and so-called ‘fire and rehire’ practices.
Under the current package, being spearheaded by deputy Prime Minister Angela Rayner, bosses have to grant staff statutory sick pay from their first day of employment, removing the current waiting period of three days.
But small businesses fear the sick pay reforms – compounded by additional protection from unfair dismissal and bolstered parental leave rights – will cost millions and deter them from taking on new employees.
Of the 92 per cent of FSB members that have concerns about the workers’ rights Bill, 74 per cent believe they will recruit fewer workers after it comes into force.
And while over a third said a rebate on statutory sick pay would encourage them to employ more staff currently out of work, 28 per cent said it would boost their employment plans generally.
Craig Beaumont, the executive director of the FSB, said the spending review presented the opportunity for Chancellor Rachel Reeves to incorporate the sick pay demands of small businesses.
“The Chancellor must act on this to show the government is not just talk on getting people into work, and helping small employers to make it happen,” he added.
A government spokesman said: “As we deliver our plan to ‘make work pay’, we will ensure all businesses have their say and are given the time to prepare for any changes as we deliver our pro-business, pro-worker agenda.”