Badenoch to take aim at ‘anti-growth’ employment rights reforms

Kemi Badenoch will take aim at Labour’s employment rights legislation on Monday, arguing that scrapping it would be the “cheapest pro-growth measure” the Chancellor could take at the Budget.

She is expected to say the Employment Rights Bill is “the single most complained-about measure” she hears when she speaks to businesses, in a speech at the CBI’s annual conference in central London.

The Conservative Party leader will say the Bill is “not about fairness, it is about power” and that it seeks to take Britain “back to a world where unions call the shots and employers carry the blame”.

Initial measures linked to the Bill, such as day one paternity leave and changes to statutory sick leave, are due to come into force in April next year.

Further measures, such as banning unfair zero hours contracts, are expected to be introduced in 2027.

However, the Bill has faced criticism from employers over increases in business costs and complexity.

Mrs Badenoch will say the right to claim unfair dismissal from the first day of employment means a new hire could lodge a claim with an employment tribunal “before they’ve even worked out where the toilets are”.

The ban on exploitative zero hours contracts that gives workers a right to a contract which reflects their regular hours amounts to a “de facto ban” on season and flexible work, she is expected to argue.

This would lead to “rational employers” deciding not to take on seasonal staff at all.

“If the Chancellor had any sense, and any regard for business, she would use the Budget to say, ‘we got this one wrong’ and drop it.

“It would be the cheapest pro-growth measure in the Red Book.

“If she does not, then I will make you this promise.

“At the first opportunity, a Conservative government under my leadership will repeal every job destroying, anti-business, anti-growth measure in this Bill.”

Business Secretary Peter Kyle hit back, saying the Tories had “declared war” on workers.

“Nobody did more to hammer business and employees than Kemi Badenoch did as business secretary.

“Her Tory Party crashed the economy – leaving firms and families saddled with sky-high interest rates, rocketing energy costs, and higher prices.

“Yet they still haven’t apologised.

“The Conservatives are clear: they’ve declared war on workers.

“Badenoch already described maternity pay as ‘excessive’ and her cruel plans would mean a return of fire-and-rehire and quashed wages for workers, while she drowns business in red tape all over again.”