Employment Rights Act could 'act as a handbrake' on hiring

THE government's new package of employment rights will put a brake on hiring, according to a new report, as businesses worry about the possible risks and costs.

- CHRIS DORRELL

More than a third (37%) of businesses surveyed by the Chartered Institute of Personnel and Development (CIPD) plan to reduce hiring permanent staff as a result of the measures.

Just under three-quarters of employers (74%) said the Act would increase employment costs, while more than half (55%) expected workplace conflict to increase.

The findings were part of the CIPD’s quarterly labour market outlook, which surveys more than 2,000 employers in the UK.