UK businesses could face a yearly bill of up to £5bn ($6.5bn) if new Labour Party workers’ rights legislation is passed, according to the UK government’s assessment of the proposals. The study argues that the measures would cause a disproportionate impact on small businesses that are responsible for employing 13 million workers. The costs are predicted to lead to reduced workforces, thus affecting UK economic growth. However, the government’s report notes that the wellbeing benefits from the changes, which include strengthening sick pay and a ban on exploitative zero hours contracts, would total £3bn.
The Employment Rights Bill will have its second reading in Parliament on Monday. It would confer new rights on workers from the first day of employment, including protection against unfair dismissal, sick pay, parental and bereavement leave. The bill would also strengthen union rights.
The new measures show a significant increase in rights for workers, which has prompted conservative opponents to refer to the legislation as “french style” laws, which could cost hundreds of millions more than the predicted £5bn annually. Shadow business secretary, Kevin Hollinrake, suggested that small and medium-sized firms should not have to comply with the proposals.
If passed, the legislation, which would particularly benefit workers in the health and social care, retail, and hospitality sectors, could help to reduce the £5.2bn annual cost to the economy caused by depression, anxiety, and stress resulting in lost working days, according to report statistics. However, it is unsure whether the benefits qualify the initially suggested expenses for the changes
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