Marvin Onumonu72% of business leaders were worried about the impact of the Employment Rights Bill on UK economic growth, saying it would have a negative effect, research from Institute of Directors (IoD) found.
49% said they would be less likely to hire new staff, while 36% said they were more likely to outsource roles or operations to other countries.
A quarter (23%) said they would be more likely to make redundancies, while 52% said they would be more likely to invest in automation.
Alex Hall-Chen, principal policy advisor for employment at the IoD, said: “The Employment Rights Bill, in conjunction with the recent increase in employer National Insurance Contributions and above-inflation increases to the National Living Wage, is significantly damaging business hiring intentions and confidence in the UK economy.
“This research clearly shows that the Bill will undermine the government’s key aims of securing the highest sustained growth in the G7 and achieving an 80% employment rate.
“Government has yet to show that it is listening to the concerns of business about the potential unintended consequences of the Bill as it is currently drafted.”
Hall-Chen added: “As the Bill continues its passage through the House of Lords, we are calling for targeted changes to the Bill to restore business confidence in hiring and investment in staff in the UK.
“If there is a silver lining, it is that more employers will invest in automation and other measures which may improve the UK’s stagnating productivity levels.”
