THE government recently unveiled a long list of new regulations they intend to introduce to increase employment rights.

It is easy for governments to create more and more laws and rights, and tempting when there are so many more employees among the voting public than there are employers. 

On the face of it greater protections for workers sounds like a very good thing – nobody wants to be at the mercy of an unscrupulous boss. But there is always a balance to be struck if we want businesses to drive economic growth.

My concern is that the new government risks getting that balance very wrong, giving little benefit to the vast majority of workers while significantly increasing the costs, risks and uncertainty for businesses looking to take on new staff. 

Here in Devon our local communities rely on many small businesses not just as sources of employment but as providers of vital goods and services.

I have had the privilege of visiting a huge number of them during my years as the local Member of Parliament and speaking to the people who run those businesses.

I know many will be worried about the potential implications of this latest raft of new requirements the government is looking to impose on them. 

This is certainly the view of the Federation of Small Businesses, who have raised significant concerns about the plans.

They have said “this legislation is a rushed job, clumsy, chaotic and poorly planned”.

On the proposal to extend various employment rights so that they apply from day one of a new hire’s tenure, they have said this “will inevitably deter small employers from taking on new people”.

I myself was an entrepreneur before running for Parliament.

I know the challenges involved with setting up and running a business. Hiring new people is a vital part of growing your business, but it also comes with the risks inherent in relying on someone you may have only just met.

It is much harder to take that leap if you are worried you may end up stuck in an arrangement with the wrong person.

There can also be unintended consequences if governments go too far in areas like this.

Some employers may choose to start hiring labour on a more casual basis or using contractors or agencies.

There are already a lot of disincentives for employers to take people on as full time PAYE employees if they can find alternative means of employing them – both in terms of the rules and regulations involved and the tax implications. 

It can also get in the way of some of the flexibility which workers themselves value.

A recent report found 75 per cent of young people on zero hours contracts and other similar arrangements were satisfied with their working conditions. 

I hope that the government rethinks some of these proposals and listens to the legitimate concerns that have been raised about the impact on jobs.

If not, they risk long-term damage to our labour market and many small businesses.