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UK employers plan hiring cuts due to new labour reforms raising costs and administrative burdens.
A UK survey reveals that 37% of employers plan to cut permanent hiring due to new labour reforms enacted under Prime Minister Keir Starmer’s government, which include day-one sick pay, shorter unfair dismissal qualifying periods, and expanded union rights.
The Chartered Institute of Personnel and Development (CIPD) reports that 74% of employers expect higher employment costs and 55% anticipate more workplace conflict, with the government’s £1bn cost estimate failing to account for added administrative burdens.
The CIPD urges the government to reconsider impacts through consultation and support for small businesses, warning of potential job creation slowdowns and increased reliance on temporary contracts.
Meanwhile, the median pay award remains at 3% for the seventh quarter.
Los empleadores del Reino Unido planean recortar la contratación debido a las nuevas reformas laborales que aumentan los costos y la carga administrativa.