Labour’s workers’ rights reforms will kill economic growth and send unemployment soaring, blast business chiefs
LABOUR’S workers’ rights reforms will kill economic growth and send unemployment soaring, business chiefs warned yesterday.
Small firms blasted Deputy PM Angela Rayner’s “clumsy and chaotic” Employment Rights Bill.
Bosses have raised fears the legislation may trigger a hiring freeze.
Tina McKenzie, at the Federation of Small Businesses, said: “This legislation is a rushed job, clumsy, chaotic and poorly planned.
“It lacks any real pro-growth element and will increase economic inactivity, jeopardising the Government’s employment target.”
Under the Bill, not set to come into force until Autumn 2026, workers will have Day One rights.
Ms Rayner’s reforms will give 30 million workers immediate rights for paternity, parental and bereavement leave.
Statutory sick pay will be paid from the first day and working from home will become a new “default position”.
Zero-hours staff will also have a right to guaranteed hours contracts.
Writing in The Sun today, Euan Blair, tech entrepreneur and son of former PM Sir Tony, said: “If we focus too much on fixing the problems of yesterday, we risk failing to fix the problems of tomorrow.”
Business Secretary Jonathan Reynolds said: “Our plan will see more Sun readers get security for the future while ensuring businesses are on a level playing field.”
Kevin Hollinrake, the Shadow Business Secretary, said: “Despite a chorus of opposition, Labour are rushing this legislation through to appease their union paymasters.”