Ashley Fox, MP for Burnham, has raised concerns in Parliament about the impact of proposed government regulations on small businesses, particularly in the hospitality and tourism sector, in the new Employment Rights Bill.
During a recent debate, Ashley highlighted the challenges that small seasonal businesses in Burnham-on-Sea could face due to a proposed “reference period” for zero-hour contracts.
The Labour government is seeking to abolish zero-hour contracts, despite many employers and employees finding them useful. The reference period in the new legislation refers to the timeframe used to calculate guaranteed hours for workers on zero-hour contracts based on the hours they have worked. Ashley emphasised that a shorter reference period, such as four weeks, could have significant consequences for small businesses. For example, if April sees a surge in sunny weather and businesses hire additional staff to meet demand, they may then be required to offer the same guaranteed hours in May—even if business conditions have drastically changed due to poor weather.
“This summer in Burnham-on-Sea was particularly challenging due to excessive rain,” Ashley said. “Small businesses with only two or three employees often hire extra seasonal staff to meet customer demand. A rigid and short reference period will force employers to take unnecessary risks, potentially leaving them overstaffed when demand drops. It’s government regulation for the sake of it, and it makes life harder for small business owners.”
Ashley Fox, a former small business owner, criticised the Employment Rights Bill for imposing significant costs on employers, "The whole bill is filled with small measures which cumulatively raise the cost of labour by £5bn, most of it on small businesses."
Ashley said, “The hospitality and tourism industries are vital to Burnham-on-Sea. We need practical policies that support small businesses, not additional red tape that puts jobs at risk.”
