Labour’s planned employment rights changes targeting zero-hours contracts could cost businesses up to £2.9bn a year, according to new official analysis.
The estimate relates to measures in Labour’s employment rights bill, which includes a crackdown on zero-hours contracts. The analysis indicates that the annual cost to firms could reach £2.9bn, although the figure is presented as a potential upper estimate rather than a confirmed cost.
Zero-hours contracts are work arrangements under which staff are not guaranteed a fixed number of hours. The proposed changes form part of Labour’s wider employment rights agenda, with the bill aimed at altering the rules that govern certain workplace practices.
The figure is significant because it puts a large potential annual price on the proposed reforms for employers. For businesses, the cost implications of changes to zero-hours working are likely to be a key consideration as the bill progresses.
The latest known position is that official analysis has placed the possible yearly cost to firms at up to £2.9bn. Further detail on how the employment rights bill will be implemented, and how businesses may be affected in practice, will depend on the development of the legislation.
