Opposition warns Labour’s Employment Bill will hurt businesses and deter investment

Andrew Griffith, the Conservative shadow secretary for business and trade, urged Labour to abandon its Employment Bill as it returns to Parliament next week, saying the legislation would impose heavy burdens on employers, raise prices for consumers and deter investment.

In a column published on Sept. 14, 2025, Griffith described the Bill as "disastrous" and criticised the government for pressing ahead despite, he said, a lack of support from mainstream business organisations. He said Labour had rejected cross-party amendments from the House of Lords that would have reduced what he characterised as significant new responsibilities for employers.

Griffith listed specific provisions he said would increase costs for firms, including measures that would make it harder to dismiss new staff for poor performance and requirements to pay workers for cancelled shifts even when employers gave advance notice and the cancellation was not their fault. He also said Labour would oppose an amendment intended to prevent strike ballots being "hijacked by a militant minority."

The shadow secretary pointed to a wave of industrial action in London this week to underscore his warning, saying recent transport stoppages illustrated the economic disruption that, he argued, the Bill would make easier. Griffith also cited what he described as growing investor concern, saying US drugmaker Merck had scrapped a planned £1 billion investment in the U.K., a decision he said reflected worries about the country’s competitiveness.

Griffith framed the Employment Bill in the context of wider fiscal and business worries, referencing a 2024 increase in employer National Insurance contributions to 15 per cent announced by Chancellor Rachel Reeves. He said combined policy changes were adding to the economic strain and would lead to higher borrowing, more taxes and lower investment unless the government changed course.

Labour has made the Bill a central part of its agenda on workers’ rights. Griffith said he had expected Prime Minister Keir Starmer to use the resignation of Angela Rayner, who had been closely associated with the legislation, as an opportunity to reconsider the proposals. He wrote that, by continuing to back the Bill in its current form, the government risked alienating the business community.

The Bill’s supporters argue it strengthens employment protections and modernises workplace rights, positions reflected in Labour’s statements during parliamentary debate earlier this year. Labour ministers have said the measures are intended to provide fairer treatment for workers. The party has previously defended its amendments and dismissed claims that the changes would deter employers.

Business groups have been weighing in as the Bill has progressed through Parliament. Griffith said no mainstream business organisation supported the legislation as presented in the Commons and Lords, a claim that echoes warnings from some industry representatives who have expressed concern about potential compliance costs and operational impacts.

The Employment Bill is due back before MPs next week. Griffith called on the government to drop the legislation, saying continuing with it would deepen economic problems and prompt further tax rises. The government has not announced any changes to the Bill ahead of the return to Parliament.