A NEW employment law being promoted by borough MP Andrew Miller could hit smaller firms and lead to job losses.
That’s the warning from the Forum of Private Business (FPB).
Mr Miller recently saw his Temporary and Agency Workers (Equal Treatment) Private Members’ Bill successfully through its second reading in the House of Commons.
Its aim is to give temps the same employment rights as permanent staff.
Defying the Government, which would prefer to see the issue handled by a special commission, 147 of Mr Miller’s fellow MPs voted to back the Bill, with only 11 votes being recorded against it.
It is now proceeding to the committee stage where it will be scrutinised line by line.
But the FPB says extending the rights of full-time employees to temporary workers could make smaller businesses less competitive and lead to job losses.
The FPB is concerned that, should it become law, the owners of smaller firms will be less inclined to employ temporary workers because of the added red tape and costs involved in handing them the same pay, holidays, training and pensions as full-time members of staff, provided they have worked for six weeks with the firm.
“For many small businesses and temporary staff members alike, agency work provides the flexibility they are seeking,” said FPB policy representative Matthew Goodman.
“Reducing the flexibility of the labour market in this way could damage small firms and, by extension, the UK’s economy. Enforcing the law to tackle agencies which abuse their positions is important, but introducing new legislation is a step too far.”
The FPB is pointing out the move could also harm independent employment agencies and mean smaller firms would be forced to spend even more time and money on recruitment and complying with employment law.
Mr Miller told the Pioneer after his Commons victory: “During the committee stage, which comes next, I am sure that all the charges made against the Bill will be found to be fallacious.”
