Employment rights reforms could cost businesses £5bn a year, Labour analysis finds
The Guardian|October 22, 2024
Employment rights reforms will cost businesses up to £5bn a year, the government's own analysis has warned. But low-paid employees will see most of the benefit, with some shift workers earning an extra £600 a year.
Jessica Elgot, Kiran Stacey, Julia Kollewe
Employment rights reforms could cost businesses £5bn a year, Labour analysis finds

In the analysis, the government acknowledges that businesses will end up paying more, including on reforms to sick pay, paternity leave and zero hours contracts as well as administrative costs.

It found that many of the mental health and physical benefits to families and workers would save significant sums, however.

Speaking in parliament before the bill's second reading yesterday, the deputy prime minister, Angela Rayner, said that most employers were already complying with the changes stipulated in the bill.

She insisted that the strengthening of workers' rights would help the economy grow long-term, saying: "Successful firms already know that strong employee rights mean strong growth opportunities. This landmark legislation will extend the employment protections given by the best British companies to millions more workers."

But the shadow business secretary, Kevin Hollinrake, said the costs "could sink" some businesses, particularly those hit by new employment claims.

The government said the costs were minimal - less than 1.5% - when compared with total employment costs and that most of the cost will represent a redistribution from firms to their workers.

Business groups said they risked being "buried under a mountain of additional cost" and warned against rushing the measures through.

This story is from the October 22, 2024 edition of The Guardian.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 22, 2024 edition of The Guardian.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM THE GUARDIANView All
The Guardian

Saudi storm FA warned to avoid protest unless boycotting World Cup

The Football Association board has been warned by voices in internal discussions to avoid protesting at today's meeting that will confirm Saudi Arabia as host of the 2034 men's World Cup, unless it is willing to boycott the tournament.

time-read
2 mins  |
December 11, 2024
The Guardian

ECB ready to extend KP's controversial Hundred deal

Exclusive

time-read
1 min  |
December 11, 2024
Villa ride luck after Barkley's winner sinks spirited Leipzig
The Guardian

Villa ride luck after Barkley's winner sinks spirited Leipzig

After Jhon Durán scored, another ludicrously powerful strike within seven minutes of entering the field, he celebrated by showing the Aston Villa supporters the palms of his hands, as if to say, calm down, what else did you possibly expect?

time-read
3 mins  |
December 11, 2024
Celtic close in on playoff spot despite misfiring in Zagreb draw
The Guardian

Celtic close in on playoff spot despite misfiring in Zagreb draw

Received wisdom before kick-off at Stadion Maksimir was that this was the ideal time to face Dinamo Zagreb.

time-read
3 mins  |
December 11, 2024
Salah keeps cool from the spot to crown Alisson's happy return
The Guardian

Salah keeps cool from the spot to crown Alisson's happy return

Liverpool's perfect Champions League continued and a new record was completed with a sixth win and a fifth clean sheet.

time-read
3 mins  |
December 11, 2024
Eclectic Monaco model thriving with a little help in Bruges
The Guardian

Eclectic Monaco model thriving with a little help in Bruges

Arsenal's opponents tonight have a policy of buy young, sell high, that works for them and their Belgian sister club

time-read
4 mins  |
December 11, 2024
Arteta turns to Tierney amid spate of injuries
The Guardian

Arteta turns to Tierney amid spate of injuries

Kieran Tierney is set to feature for Arsenal for the first time in more than 16 months after Mikel Arteta revealed he expected to be without several key defenders for tonight's Champions League meeting with Monaco.

time-read
1 min  |
December 11, 2024
Guardiola rules out managing another club after City
The Guardian

Guardiola rules out managing another club after City

Pep Guardiola has ruled himself out of managing another club after Manchester City due to a waning of his energy levels, stating an international coaching position would be of interest to him as his next role.

time-read
1 min  |
December 11, 2024
Saudi Arabia's journey from 90s novelty to World Cup power grab
The Guardian

Saudi Arabia's journey from 90s novelty to World Cup power grab

As Cristiano Ronaldo and Newcastle can attest, the 2034 hosts-elect are now at heart of football politics

time-read
5 mins  |
December 11, 2024
The Guardian

Harris to leave Millwall after 'mutual decision'

Neil Harris will step down as Millwall manager for a second time after Saturday's Championship game at Middlesbrough.

time-read
1 min  |
December 11, 2024