Over a third of employers are cutting back on hiring in response to the government's reforms on workers' rights, research has found.
The survey carried out by the Chartered Institute of Personnel and Development (CIPD) polled 2,000 businesses and found that 37% of them planned to limit recruitment of new staff due to the changes.
The Times reports changes to the Employment Rights Act this year include statutory sick pay from the first day of employment, easing of rights around trade union recognition and shortening the qualification period for unfair dismissal claims.
Ben Willmott, head of public policy at CIPD, said the new policies could “act as a further handbrake on job creation and recruitment” on top of the £24billion increase to employers’ national insurance contributions which was introduced last year.
He went on: “It’s important the government acts to try and mitigate these potential negative consequences, including through meaningful consultation and, where necessary, compromise on key measures still to be decided.”
Plans to boost protections for workers are also expected to result in a rise in workplace conflicts, according to more than half (55%) of respondents.
The CIPD said the new legislation is based on an understanding that it would lead to fewer conflicts and tribunals.
But the report states: “Workplace conflict is a huge cost to business. Given a large majority of employers don’t recognise unions, particularly among the UK’s 1.4 million micro and small employers (with 1–49 employees), it is difficult to see how union representation or recognition will reduce conflict in any material way.”