Staffordshire Chambers of Commerce has expressed concern that planned changes to zero hours contracts could add further pressure to employers already facing rising costs.
Chief executive Stuart Elford said the “cumulative impact” of additional regulation and rising employment costs could hit members, particularly smaller firms in hospitality, logistics, retail and care.
The warning comes after the British Chambers of Commerce raised concerns over new government research into the costs to businesses of proposed changes to zero-hours contracts.
The Government is proposing reforms to zero hours contracts as part of its wider employment rights reforms.
But new analysis suggests the changes could cost employers between £350 million and £2.9 billion, depending on the eventual threshold of hours covered by the policy.
Stuart said: “Businesses across Staffordshire understand the importance of giving people security at work, and many employers already offer flexible arrangements that work well for both staff and the business. The concern is not with the principle of fairness, but with the cumulative impact of additional regulation and rising employment costs arriving at the same time.
“For many of our members, particularly smaller firms in hospitality, logistics, retail and care, flexibility is essential to managing fluctuating demand. Changes that reduce that flexibility or create significant new administrative and staffing costs could make employers more cautious about recruitment, including taking on younger workers and those seeking part-time opportunities.
“We would like to see government continue working closely with employers, trade unions and representative bodies to ensure any reforms are practical, proportionate and support both good jobs and sustainable business growth.”
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