Lloyd’s of London chief executive John Neal has expressed concerns over proposed labour reforms, warning that employers must strike a balance between workers’ rights and business needs.
Speaking on recent developments in UK employment law, Neal highlighted the potential risks of excessive regulation, which could lead to job cuts or offshoring.
Neal, who has been working to bring employees back to Lloyd’s after the pandemic, emphasised that workers must understand their role within a business.
“The employee’s got to understand that they’re being paid to do a job,” he said in an interview, cautioning that new regulations should not place undue pressure on employers.
Labour Party proposals include giving employees the right to request a four-day work week and the ‘right to switch off’, as well as promoting remote work. Chancellor Rachel Reeves, at the Labour Party conference, described the measures as part of “a new deal for working people” aimed at improving work-life balance and fair pay.
However, businesses have expressed concern that the proposed reforms, which also introduce protections against dismissal from day one of employment, may reduce hiring incentives.
Neal acknowledged that past practices sometimes demanded too much from workers, such as expecting constant availability, which he conceded “can’t be right” as employees also need breaks.
Neal further stated that while it’s important to ensure employees feel valued through compensation and benefits, businesses also need to operate efficiently. “You want UK plc to be alive and well,” he explained, suggesting that excessive costs or pressure could force businesses to consider restructuring or relocating jobs abroad.
Lloyd’s of London currently offers employees some flexibility, with a requirement to be in the office three to four days per week. Neal noted that office attendance has largely returned to normal between Tuesday and Thursday, though Mondays and Fridays remain quieter.
Despite these changes, Neal underlined the importance of physical presence for maintaining the business’s operations.
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