Scotland’s leading business chief has welcomed the broad thrust of the new UK Employment Rights Bill but cautioned against potential unintended consequences and yet further increases in costs.

Scottish Chambers of Commerce Chief Executive, Dr Liz Cameron CBE, said businesses are already implementing many of the principles of the new government’s bill, providing enhanced conditions and offering flexible working models. She emphasised that all potential changes need to be proportionate and sensible to accommodate all sizes and sectors of our economy.

“While the Scottish Chambers of Commerce is supportive of improving conditions and rights for staff we need to ensure there isn’t an unsustainable legislative and bureaucratic burden. And the Bill needs to ensure there is no increase in costs at a time when many are already struggling with higher wage bills and escalating costs,” said Dr Cameron.

“Employment rights should be good for employees and business and that means being practical and relevant to the workplace. Many of our 12,500 members rely on zero hours contracts to provide staff and the business the flexibility to cater for employees’ lifestyle and business needs. The Bill needs to offer opt-outs for those that don’t want a fixed hours contract.”

She added: “Introducing employment rights from day one fails to take cognisance of the workplace reality where both employee and employer need to be able to be the right fit for each other and the role. Having probation periods are key to providing timely assessments and for taking decisions – on both sides.

“The proposed new rights to a tribunal access from day one will inevitably lead to more settlement agreements to avoid a lengthy and costly tribunal process, placing more burdens on businesses. All of this comes at a time when businesses are being held back by the inability to recruit experienced and skilled staff and the expense of securing and retaining them in a highly competitive market.

“We hope a balanced and pragmatic approach will be right for both businesses and their employees and look forward to working with the government on the practical details.”