Labour was last night warned its workers’ rights revolution will cause a ‘jobs bloodbath’ – as one of the party’s favourite think-tanks hit out at ‘day one’ protections.
The Left-leaning Resolution Foundation said plans to protect new workers from unfair dismissal from day one could inhibit hiring, would offer ‘little obvious gain’ and should be ditched.
The current system, which includes rights such as statutory bereavement and maternity leave, only kicks in when an employee has been in a job for two years.
In its Employment Rights Bill, Labour has also proposed introducing nine-month legal ‘probation’ periods to address concerns, but the think-tank said this was a ‘messy compromise’.
And in another blow to employers, the Chancellor is expected to confirm a rise in the national living wage of about 4 per cent at next month’s Budget, bringing it to at least £12.70 an hour.
Rachel Reeves will also recommit to extending the living wage to workers aged 18 to 21, having previously branded the age group’s rates ‘discriminatory’.
The Tories last night said the Employment Rights Bill – which is set to be debated in the Lords tomorrow – would lead to a jobs ‘bloodbath’ affecting young adults the most.
Shadow business secretary Andrew Griffith told the Daily Mail: ‘It will lead to a jobs bloodbath, with young people… the biggest victims. In the face of rising unemployment, ministers need to listen to the voice of business and kill this Bill now.’
Rachel Reeves (pictured in Birmingham on September 1) will recommit to extending the living wage to workers aged 18 to 21, having previously branded the age group’s rates ‘discriminatory’
The legislation is aimed at improving conditions for employees and empowering trade unions, but ministers have admitted the package of measures – which was championed by former deputy prime minister Angela Rayner – could cost businesses as much as £5billion a year.
In a paper released today, the Resolution Foundation urged the Government to ‘change tack’ on unfair dismissal.
The group – which was once led by Treasury minister Torsten Bell – is now headed by Ruth Curtice. She said: ‘Introducing a new legal probation period… is a messy compromise that risks making it harder for firms to hire, confusing workers and serving to only benefit employment lawyers.’
A Government spokesman said: ‘Our reforms to the labour market and employment rights are crucial for our plans to drive economic growth.’
