Labour workers' rights shake-up sees small firms slash jobs and cut hiring
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Nearly a third of small businesses plan to axe staff this year in response to legislation introduced by the new Labour government, data suggests. A poll conducted by the Federation of Small Businesses showed 32 per cent of respondents plan to reduce headcount as a result of the Employments Rights Bill, while 67 per cent say they will recruit fewer new workers.
More than 90 per cent of members said they were concerned about the bill, with many citing a fear of getting sued under planned changes to unfair dismissal legislation. The FSB has urged the Government to make urgent changes to the bill, which it says will see Britain's benefits bill soar after nearly half of respondents to its survey claimed they would avoid hiring out-of-work and first job applicants.
The Employment Rights Bill is the first phase of delivering Labour's 'Plan to Make Work Pay', and provides support for employers, workers, and unions 'to get Britain moving forward'. The Government says the bill will update and modernise the current legislative framework in relation to employment rights.
FSB warns Britain's benefits bill will rise as employers cut back on hiring. It has passed its first and second reading, and is now at the committee stage in the House of Commons. The bill will also have to pass the Commons' report and third reading stage, before being submitted to the House of Lords for further scrutiny.
