Most businesses are planning to put hiring on hold as they brace for Labours overhaul of workers rights.
In a further sign that confidence among employers is plummeting, a new poll has found that 57 per cent of business leaders will be less likely to hire new workers because of the planned employment rights legislation.
The survey, published by the Institute of Directors, warned the government could be pushing ahead with changes too quickly.
It comes as Labour looks to introduce changes to law which will include giving workers rights from day one in new jobs as well as a crackdown on zero-hours contracts.
The government has said it will push ahead with this revamp within the first 100 days of power, which means changes could come into force from 13 October.
Most businesses are planning to put hiring on hold as they brace for Labour Chancellor Rachel Reeves overhaul of workers rights
A new poll has found that 57 per cent of business leaders will be less likely to hire new workers because of the planned employment rights legislation (stock image)
Concerns have already been expressed by industries, including hospitality, that are reliant on part time and temporary workers (stock image)
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 Governments 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, she added.
Only 2 per cent of the 715 respondents surveyed said they would be more likely to hire after the changes, the IoDs survey found.
Concerns have already been expressed by industries, including hospitality, that are reliant on part time and temporary workers.
They say these employees also appreciate flexibility and hope this is respected by the new rules.
Before the election, Lord Mandelson - the architect of New Labours 1997 election victory - urged the party to tread carefully so it did not cripple thriving British businesses
Others have flagged the possible costs and regulatory burdens that the new measures will bring.
Before the election, Lord Mandelson - the architect of New Labours 1997 election victory - urged the party to tread carefully so it did not cripple thriving British businesses.
Other business groups including the Confederation of British Industry have warned of the unintended consequences of the reforms.
The findings from the IoD came as separate statistics from Henley & Partners, which helps wealthy investors move overseas, showed a net loss of 4,200 millionaires in the first five months of the year, with 5,300 expected to leave before January.