Fears over Labours plans to boost workers rights are plunging British firms into damaging uncertainty and fuelling fears for the economy, a new survey reveals.
Business leaders raised the alarm last night over lack of detail in the Governments flagship programme to give workers a string of new rights from their first day in the job.
The warning came as a new survey showed growing pessimism among company bosses over doing business in the UK over the next five years.
More than 60 per cent consulted by the Confederation of British Industry (CBI) predicted a decline in the UK as a place to invest over the next five years.
Under plans championed by Deputy Prime Minister Angela Rayner , Labour is committed to a radical Make Work Pay agenda – including giving workers protection from unfair dismissal from day one of a new job
A woman working from home. Business leaders raised the alarm last night over lack of detail in the Governments flagship programme to give workers a string of new rights (stock image)
Under plans championed by Deputy Prime Minister Angela Rayner, Labour is committed to a radical Make Work Pay agenda – including giving workers protection from unfair dismissal from day one of a new job.
Minister are also proposing to give employees a new right to work from home as well as a right to switch off from answering managers phone calls and emails.
Labour pledged to introduce the necessary legislation within 100 days of taking office but the Employment Rights Bill has yet to be published.
And yesterday, the latest CBI/Pertemps employment trends survey warned of the potential for unintended consequences of aspects of the Governments programme.
It revealed that given the limited information they currently had on Labours plans, only 26 per cent of businesses were confident they could absorb the cost of the Make Work Pay plans.
More than half either disagreed or strongly disagreed that they could afford expected higher costs without unintended consequences.
The survey also highlighted how Government and business working together can meet the challenges of the new plans.
The Tories, Shadow Business and Trade Secretary Kevin Hollinrake (pictured) accused the Government of hanging the Sword of Damocles over the heads of business
And last night, the CBI stressed that it shared the Governments primary mission to boost investment in the UK….and raise living standards for people across the country.
But CBI future of work and skills director Matthew Percival, the organisations future of work and skills director said: While business recognises the objectives of many of these reforms, the lack of detail about how they will be achieved has created damaging uncertainty.
Businesses are concerned that achieving these goals in the wrong way risks significant unintended consequences for growth and for workers.
Those concerns are understood to include worries that employers could face expensive industrial tribunal bills as part of the new regime.
However, a Department for Business and Trade spokesman cast doubt on the research, saying: The concerns of under 100 businesses in this survey do not reflect those of the hundreds of small, medium and large companies we are actively consulting with as we develop the details of our proposals .
The majority of employers support the governments plans to strengthen employment rights, with a recent survey of bosses showing they think it would be positive for productivity, staff retention and profits.
However, for the Tories, Shadow Business and Trade Secretary Kevin Hollinrake accused the Government of hanging the Sword of Damocles over the heads of business.
Luke Johnson (pictured), part owner and chairman at Gails bakery, said: Labour plan a raft of new employment regulations which will lead to higher costs and more claims for businesses
He added that Labour know nothing about business but do know that when their union paymasters say jump, their only question should be: how high?
Last night, Luke Johnson, part owner and chairman at Gails bakery, said: Labour plan a raft of new employment regulations which will lead to higher costs and more claims for businesses.
These will discourage job creation and punish smaller businesses in particular.
They will inhibit entrepreneurs and growth - the opposite of what Labour claims is their priority.
No wonder investors and wealth creators are leaving.
Russ Shaw, of Tech London Advocates, said: This could put even more pressure on small businesses and startups who may have less rigourless HR practices in place.
It may also mean that recruitment times get extended to ensure companies get it right when offers are made.
I know many young people who go through incredibly lengthy recruitment processes, and I can see that being extended.
Although well-intentioned, the potential new plan may inadvertently harm younger people seeking employment, especially for the first time.