Regulatory Committee Criticizes Employment Rights Bill

The Regulatory Policy Committee (RPC) has declared the impact assessment for Labour's Employment Rights Bill 'not fit for purpose', criticizing the Department of Business and Trade for inadequate evidence and flawed financial projections. The RPC estimates that the bill could impose costs of up to £5 billion on businesses, particularly affecting low-wage sectors, while warning that these costs may lead to wage reductions or job losses. It has identified eight specific measures within the bill, including protections against unfair dismissal and changes to strike laws, as lacking sufficient justification. The committee has called for a comprehensive analysis of the macroeconomic impact, particularly how costs will be passed to employees. Government officials maintain that the proposed reforms will enhance worker protections and promote fairness, despite warnings from business groups about potential negative repercussions on employment and investment. The legislation has already passed through Parliament and is expected to become law soon.