Employment law U-turns not enough, says CBI chief amid investment fears

Rupert Soames, the president of CBI, has lambasted the government's suggested alterations to employment law as being "highly damaging" for business investment in Britain.

He expressed his opinion in a piece for The Times, contending that recent backtracking on the most contentious parts of the bill -- including modifications to statutory sick pay, revisions to protections for agency workers, and cancelling plans for a "right to switch off" – have been insufficient, as reported by City AM.

The CBI head and chairman of Smith & Nephew, Soames, criticised the legislation for creating obstacles to investment and international workforce growth.

The proposed employment laws have been met with criticism from various business organisations such as the British Chambers of Commerce, UKHospitality, and the Institute of Directors.

According to Soames, the stance of CBI has been "largely ignored."

He emphasised the burdensome backdrop for reforms, stating, "The government's reforms must be seen in the context of one of the biggest cost increases for employers in decades – higher national insurance, the living wage hike, and changes to business rates and taxation on business assets."

Yet, amid these concerns, Business Secretary Jonathan Reynolds assured earlier this week of an endeavour to "untap the UK's potential by attracting the best talent".

However, Soames pointed out that widespread sanctions are unfairly penalising all employers due to misconduct by a few: "Everyone acknowledges that there are, unfortunately, bad actors in the labour market - a small minority of bad employers, just as there are a few bad employees."

Soames remarked on the cumulative impact of new measures, stating: "In combination, these measures are profoundly detrimental to investment and growth."