Labour's workers' rights concessions to save businesses billions, assessment shows

"A series of concessions on Labour's flagship workers' rights reforms will save businesses billions of pounds, a government impact assessment shows. An initial analysis by officials found that implementing the party's measures to bolster workers' rights would cost firms up to 5bn a year. However, an updated analysis on Wednesday, which accounted for major concessions made by ministers, said it will now cost companies 1bn a year."

"The Employment Rights Act will give workers access to sick pay and paternity leave from the first day on the job and introduce new protections for pregnant women and new mothers. In November, Labour dropped plans to give all workers the right to claim unfair dismissal from their first day in a job. Instead, it will bring in enhanced protections after six months in employment, the bill's most significant measure."

"But the British Chambers of Commerce said the 1bn figure "is likely to be a massive underestimate". Policy director Kate Shoesmith said: "The impact figure doesn't adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues. "Concessions such as introducing the six-month qualifying period will reduce costs but not on the scale this latest assessment suggests.""

An initial government analysis estimated that implementing Labour's workers' rights measures would cost firms up to £5bn a year. Major concessions reduced the updated impact assessment's estimate to £1bn a year. The Employment Rights Act will grant workers access to sick pay and paternity leave from their first day and introduce additional protections for pregnant women and new mothers. Labour removed plans to allow unfair dismissal claims from day one, instead providing enhanced protections after six months' employment. The package will be phased in over several years with many measures subject to consultation and secondary legislation. Business groups welcomed concessions; some unions and left-wing MPs criticized them.

Read at www.bbc.com