Call for clarity | 4 in 5 employers expect costs to rise due to Employment Rights Bill

With hundreds of new amendments made to the Employment Rights Bill this week, the CIPD is calling on the government to prioritise creating an implementation plan and clear guidance for employers, as research shows many expect the additional costs of new laws to lead to potential job losses and reduced hiring.

A CIPD survey of more than 2,000 employers finds that 4 in 5 (79%) organisations expect measures planned to be introduced in the bill – for example, changes to unfair dismissal rules, Statutory Sick Pay reforms and the right to guaranteed hours for those on zero hours contracts - to increase employment costs. Among employers that expect costs to increase because of the bill, the most likely ways they plan to manage this is through:

• Reducing the number of employees through redundancies and/or recruiting fewer workers (30%) 

• Introducing or increasing automation (23%)  

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