The FSB's survey found that 56% of small businesses will cancel or scale back investment due to Labour's Bill, leading to reduced hiring and economic growth.
Tina McKenzie emphasized that small firms have clearly stated that the Bill will not motivate them to hire, fearing legal repercussions will lead to fewer job openings.
McKenzie warned that if employers are apprehensive about lawsuits, hiring will plummet, causing a rise in the benefits bill and hurting living standards in the UK.
She urged the government to reconsider the new dismissal processes, advocating for a return to a one-year qualification period, suggesting it would help sustain jobs.
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