IoD: Majority of businesses likely to reduce hiring as a result of employment rights reforms

Latest research from the Institute of Directors has found that 57% of business leaders will be less likely to hire new workers as a result of the Government’s planned employment rights legislation.

The UK Government has committed to introducing an Employment Rights Bill within its first 100 days of office, by 12 October 2024.

Commenting on the survey results, 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.”

Full results

715 responses from across the UK, conducted between 16-28 August 2024. 11% ran large businesses (250+ people), 21% medium (50-249), 25% small (10-49 people), 31% micro (2-9 people) and 12% sole trader and self-employed business entities (0-1 people).

The government is planning to introduce an Employment Rights Bill within its first 100 days of office. Measures expected in the Bill include:

• Giving workers the right to a contract reflecting the hours they usually work
• Strengthening the statutory code on fire and rehire
• ‘Day one’ employee rights to parental leave and sick pay, and protection against unfair dismissal
• Making it unlawful to dismiss a maternity returner for six months after their return to work, except for in specified circumstances
• Simplifying the statutory trade union recognition process
• Making Statutory Sick Pay available to more workers by removing the lower earnings limit and waiting period

What impact, if any, would these reforms have on your organisation’s hiring intentions?