Leading lawyers warn Labour's Employment Rights Act is putting jobs at risk - London Business News | Londonlovesbusiness.com
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Leading lawyers warn Labour's Employment Rights Act is putting jobs at risk - London Business News | Londonlovesbusiness.com
""With the next wave of changes coming into force in April, we're seeing businesses not only look at their recruitment practices and tightening these significantly, but also considering whether they should streamline their workforce now and/or change pay and benefits so they are in the strongest position in advance of the additional rights coming into effect.""
""Enhanced employment rights are, in theory, good news for workers. However, the ability to be agile and to adapt is key for businesses to be successful, profitable and meet clients' evolving needs.""
""Particularly at risk are workers in industries that rely on flexibility to scale up and down in response to fluctuating demand, such as hospitality, leisure and care.""
The Employment Rights Act 2025 is prompting employers to reassess their workforce and consider restructures. Businesses are tightening recruitment practices and evaluating pay and benefits to adapt to new rights. While enhanced rights are beneficial for workers, they may limit business flexibility. Industries reliant on adaptability, like hospitality and care, are particularly at risk. The Act introduces new rights, including extended parental leave, which could further impact workforce dynamics and costs.
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