Bosses Could Sack Sick Staff Under Employment Rights Overhaul
In a move that has generated significant controversy and concern among businesses, Labour’s proposed employment rights overhaul could lead to employers having to dismiss staff who are frequently ill or take prolonged sick leave. This development, aimed at reforming statutory sick pay (SSP) rules, has drawn criticism from various quarters, including the Recruitment and Employment Confederation (REC).
Bosses Could Sack Sick Staff Under Employment Rights Overhaul
Shazia Ejaz, a representative of the REC, voiced strong concerns about the financial implications of the new SSP rules, particularly for small businesses. “We urge the government to set the rate of SSP at a level that encourages employers to retain staff, rather than having to move swiftly to capability-based dismissal,” Ejaz stated.
She highlighted that 60% of the financial burden from these new rules would disproportionately fall on small businesses, which are already grappling with the pressures of minimum wage hikes and increased National Insurance Contributions (NICs).
The impact on agency workers is expected to be particularly severe under the proposed plans, spearheaded by Deputy Prime Minister Angela Rayner. The Regulatory Policy Committee, an independent government body, has also criticised Labour’s workers’ rights package, deeming it “not fit for purpose.” The committee pointed out that ministers had failed to adequately assess how the additional costs would be transferred to employees.
According to the government’s own impact assessment, these changes are projected to cost businesses a minimum of £4.5 billion annually. This significant increase in operational costs could compel businesses to make difficult decisions, including the potential dismissal of staff who are frequently absent due to illness, in order to remain financially viable.
As the debate continues, businesses and workers alike are bracing for the potential ramifications of Labour’s ambitious employment rights overhaul. The call for a balanced approach that supports both employee welfare and business sustainability is becoming increasingly urgent.