As the general election looms, the major parties are trying to woo the worker. But does that come at a price for businesses? BETHANY WHYMARK reports.
As the general election campaign rumbles on, the rights of workers has become the latest battleground for the party leaders.
Theresa May and Jeremy Corbyn are fighting for the worker's vote with promises ranging from minimum wage increases and further rights to unpaid leave, to scrapping zero-hours contracts, a policy also touted by Tim Farron's Lib Dems.
But as the parties rush to court the employee, the thoughts of the employer – and the financial and legal implications they may suffer – seem to be playing second fiddle.
Companies such as Deliveroo and Uber have brought employees' rights into the spotlight after they were found to be exploiting contractual loopholes to avoid offering benefits such as paid sick leave and holiday pay.
RSA chief executive Matthew Taylor is currently heading a review into modern employment practises, including in the so-called gig economy.
Carla Gowing, an employment solicitor at Hatch Brenner in Norwich, said while increasing benefits for workers was 'positive on the whole', there was a risk that significant costs incurred for businesses by these changes could see 'corners being cut'.
'Ultimately the parties are going to have to balance the introduction of improved worker or employee rights with the impact on businesses and the effect certain pledges might have on their target voters,' she said.
Salena Dawson, East Anglia regional chairman of the Federation of Small Businesses, said: 'Simply adding a new set of statutory employment regulations is not enough – they must be backed up with proper support for smaller businesses.'
Meanwhile Daya Thayan, chief executive of Lowestoft-based care home operator Kingsley Healthcare, worried it would be 'counter-productive' to introduce new measures 'to regulate every aspect of employment'.
Theresa May is promising the Conservatives' biggest ever expansion of workers' rights, including a pledge to raise the national minimum wage – a popular policy with the lowest-paid, but at the cost of employers.
Mr Thayan, a supporter of the higher voluntary living wage, said: 'We have taken the position it is right that people are sufficiently rewarded for the work they do to encourage them to continue in employment.
'However, it would be counter-productive to keep hiking it to the point where no entrepreneur or employer would be able to support the cost. That would not encourage investment and expansion in our industry.'
Nova Fairbank, public affairs manager at Norfolk Chamber of Commerce, said: 'Low pay and low social mobility are a challenge to the Norfolk economy, but they won't be solved just by driving up wage rates. While many companies have the ability to increase pay, others will struggle to do so alongside other up-front costs.'
James Gooderham, a director at recruitment firm The Personnel People, said that adjustments to the national minimum and living wages needed to be 'sensible and honest' to avoid burdensome financial increases for smaller companies.
Meanwhile Ms Gowing warned that businesses may have to sacrifice other benefits to fund proposals including wage increases and employees' right to leave to look after a sick relative – another Tory proposition.
One flagship Labour pledge is the scrapping of zero-hours contracts, a working practice which has attracted negative attention through companies like Sports Direct.
Ms Gowing said that while in many cases the bad press was justified, zero-hours contracts could be beneficial for companies and staff. She added: 'If a ban is implemented, the result could just be lots of workers or employees on contracts with only minimal hours guaranteed, meaning workers and employers may lose out on flexibility.'
The Liberal Democrats have positioned themselves on the side of small businesses in their manifesto, with the promise of a £100-per-week allowance for entrepreneurs to help towards living costs.
Ms Dawson said: 'With EU funding set to end and no regional development spend budgeted at the national level beyond 2021, small firms are staring into a business support black hole post-Brexit.
'Maintaining investment in schemes designed to boost small business activity across all regions will be key to any successful industrial strategy. Failure to do so risks a shock to the economy,' she said.
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