IoD press release Government's rejection of Employment Rights Bill amendments sends alarming message to business
Responding to the latest ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data reflects a further weakening in employer demand for labour, with vacancies falling by 1.4% over the quarter and a small decrease (8000) in payrolled employees on the month.
“A perfect storm of government policies via the Employment Rights Bill, above-inflation increases to the National living Wage, and the increase in Employer National Insurance Contributions have significantly weakened the business case for hiring staff.
“An IoD survey of over 600 business leaders last month found employment regulation is the biggest regulatory blocker to business growth in the UK, with 45% citing it as a barrier to their company growing. At the same time, six in 10 cited employment taxes as negatively affecting their organisation.
“The government’s refusal to engage with sensible amendments made to the Employment Rights Bill in the House of Lords is sending a clear signal to businesses that their concerns are being ignored. With the return of the Employment Rights Bill to the Commons, we urge government to engage meaningfully with business to address its key concerns and restore business confidence in hiring.”
Full results
604 responses from across the UK, conducted between 18-28 August 2025. 15% ran large businesses (250+ people), 18% medium (50-249), 28% small (10-49 people), 27% micro (2-9 people) and 11% sole trader and self-employed business entities (0-1 people).
Which of the following, if any, are having a negative impact on your organisation?
Which areas of regulation are the biggest blockers to growth for your organisation?
