The UK's largest employers' group has warned that plans to overhaul workers' rights will "wreak havoc on our already fragile economy," and result in job cuts.
The Federation of Small Businesses said its members were "dreading" the Employment Rights Bill, which includes proposals to expand the grounds for unfair dismissal and more access to sick pay.
The government's plans would see two thirds of small businesses think twice before hiring and one third plan to reduce staff numbers, a survey of 1,270 companies found.
Separate research by the federation found that in the final three months of last year 32% of small employers said they expected to reduce staff, up from 17% in the previous quarter.
The proportion of companies looking to hire fell from 14% to 10% over the two quarters. 51% of companies said labour costs were one of the greatest barriers to growth.
The government has said the employment rights legislation marked the “biggest upgrade to rights at work for a generation” and the changes have been welcomed by larger employers and trade unions.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 75-points at 8,687 shortly after opening this morning.
Brent crude oil futures were up 0.79%, trading at $76.09 a barrel.
Companies reporting today
20-Feb | |
|---|
Airbus* | Full Year Results |
Alibaba* | Q3 Results |
Anglo American* | Full Year Results |
Cameco* | Q4 Results |
Centrica* | Full Year Results |
Hays | Half Year Results |
Indivior | Full Year Results |
Lloyds Banking Group* | Full Year Results |
Mondi | Full Year Results |
Safestore | Q1 Trading Statement |