While the new rules will increase rights for workers, there will be significant costs for business, estimated at around £5bn a year by the government, which described the direct costs on business as being in the ‘low billion pounds per year’.

The main costs for business will be the direct cost implications of delivering the new rights in financial terms, cost of training and familiarisation with new legislation, administration and compliance costs, as well as other costs such as the loss of flexibility for employers who use variable hours contracts to manage variable demand.