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Businesses plan to put hiring on hold, survey says

1 min read

More than half of business leaders will be less likely to hire new workers as a result of the Government’s planned employment rights legislation, according to new research. 

A survey by the Institute of Directors saw 57 per cent of respondents say they would be less likely to hire new workers because of the planned employments rights legislation. 

It comes as the Government has committed to introducing an Employment Rights Bill within its first 100 days of office, by 12 October. 

Measures expected in the Bill include a crackdown on zero-hours contracts, ‘day one’ employee rights to parental leave and sick pay, making Statutory Sick Pay available to more workers and strengthening the statutory code on hire and refire. 

Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: “Business leaders are concerned about the impacts of the proposed new reforms on the cost of employing staff. 

“The Government’s self-imposed deadline for the introduction of employment rights legislation is now just over a month away. Time is running out, so it is essential that the Government starts to meaningfully engage with business on the detail of its proposed reforms to ensure that its growth mission is not derailed.” 

Of the 715 respondents surveyed, 35 per cent said the reforms would have no impact on their organisation’s hiring intentions and two per cent said they would be more likely to hire. 

The Employment Rights Bill is one of a raft of legislative measures outlined in the King’s Speech in July and was described as “a new deal for working people to ban exploitive practices and enhance employment rights”. 

Hayley Johnson

Senior journalist with over 15 years’ experience writing for customers and audiences all over the world. Previous work has included everything from breaking news for national newspapers to complex business stories, in-depth human-interest features and celebrity interviews - and most things in between.

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