The UK Labour government's proposed employment rights reforms could cost businesses up to £5 billion annually, according to government analysis. These reforms, which include improved sick pay and banning exploitative zero-hours contracts, aim to benefit low-paid workers, with some shift workers potentially earning an extra £600 a year. While the costs are considered modest, amounting to less than 1.5% of total wage expenses, smaller businesses are expected to be disproportionately impacted. Critics argue that the reforms could lead to job cuts, increased consumer prices, and hinder investment. However, proponents claim that the long-term benefits, including mental health improvements and economic growth, will outweigh the costs. The legislation, which will also empower trade unions, is set to be debated in parliament.