Angela Rayner's costly employment rights package is a ‘stealth tax on workers,' report finds
The measures, which could cost firms £5billion a year, will be passed on to staff through smaller pay rises and hidden taxes which reduce wages over time, the Institute of Economic Affairs said.
Report author Professor JR Shackleton said: 'Politicians love to announce new employment 'rights ' because they think employers pay the bill – but that's an illusion.
'Every mandate, from parental leave to holiday entitlements, acts like a stealth tax that gets passed back to workers through smaller pay rises than they would otherwise receive.
'The only difference is that no money is raised for the Exchequer.
' The Employment Rights Bill will make this much worse, imposing billions in hidden costs that workers will ultimately bear themselves."
Shadow Business Secretary Andrew Griffith said: 'This socialist government doesn't understand business but must listen to those who do.'
A Government spokesperson insisted: 'Too many workers are trapped in insecure, low paid work, with weak protections that are poorly enforced.
'Through our transformative Plan for Change, this Government will deliver the biggest upgrade to workers' rights in a generation, contributing to economic growth, and our measures have strong support from businesses and the public.'
The legislation returns to Parliament today as Peers scrutinise the legislation at the report stage.
Angela Rayner says lifting 2-child benefit cap not 'silver bullet' for ending poverty after demanding cuts for millions
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