During Monday night’s debate, the Employment Rights Bill—which attempts to address low wages and unfavorable working conditions—passed its second reading by a vote of 386 to 105.
The bill contains a number of reforms that have been dubbed the largest revamp in a generation. These include giving employees the right to statutory sick pay from the moment they become ill, the protection against unjust dismissal from the moment they start working, and the ability to work from home.
Additionally, “exploitative” zero-hour contracts would be prohibited, and unions will be granted access to workplaces.
However, the Department for Business and Trade admitted in the government’s own impact assessment, which was released today, that the new regulations may cost companies up to £5 billion annually as they adapt to the new laws and incur administrative and compliance expenses.
It also cautioned that if there are disputes between employers and employees regarding rights, the number of cases that make it to the mediation service and employment tribunal may rise by about 15%.
The government has revealed the cost of the measures spearheaded by Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds for the first time with the impact assessment.
