What can small businesses expect from Labour's employment law reforms?

Small businesses could be impacted by Labour’s reforms to employment law which will be unveiled next month – here's how to prepare.

Deputy Prime Minister Angela Rayner visits a Holiday Inn Express
(Image credit: Christopher Furlong/Getty Images)

Should small business owners be worried about the Labour government’s plans to beef up workers’ rights? Not according to ministers, who have launched a charm offensive to soothe entrepreneurs’ fears. September saw Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds meet small business groups to discuss potential changes to the law. 

We won’t know exactly what Labour is planning until it publishes its detailed proposals on how to “make work pay” – as it branded the reforms in the election campaign. An employment rights bill is expected in October. In the meantime, some likely changes are worrying employers more than others.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.