OBR warning | Employment Rights Bill likely to have 'net negative' impact on economy

The Government's push for stronger workers’ rights will likely have a “net negative” impact on the economy, the Office for Budget Responsibility has warned.

The Employments Rights Bill - a package of huge reforms to employment laws that will give more power to workers - is one of Labour’s flagship plans for their first term in Government since 2010.

It includes measures such as a right to request flexible working from day one of employment, sick pay from the first day of illness, changes to probation periods and earlier entitlements to maternity pay.

The bill is currently going through stages of Parliament before consultations with employers, with an expected implementation in 2026.