Overview
- A CIPD survey of more than 2,000 employers reports 37% plan to reduce recruitment of new permanent staff in response to the Employment Rights Act.
- A majority of employers (55%) expect more workplace conflict under the reforms, with only 4% anticipating fewer disputes, contrary to Whitehall’s analysis.
- Nearly three quarters of respondents (74%) expect higher employment costs, with the CIPD warning of a potential handbrake on job creation without mitigation.
- The Act introduces day‑one statutory sick pay, easier trade‑union recognition, a cut to the unfair‑dismissal qualifying period to six months, tighter rules on zero‑hours contracts, an effective ban on fire‑and‑rehire, and removal of the unfair‑dismissal compensation cap from next January.
- Government economists estimate around £1bn in annual business costs, unions hail the changes as a major upgrade to rights, and business groups including the CBI and BCC continue to push for adjustments.