The enhanced package of workers’ rights includes day one right to protection from unfair dismissal, potential ending of all probation periods and a suite of additional costs for businesses from extension of statutory sick pay entitlement to abolition of zero hours contracts.

Coupled with the rise in employers’ national insurance from April, which has hit company budgets, cashflow and investment, the biggest fallout has been job cuts with unemployment figures rising. The latest HMRC PAYE figures on payrolled employees is grim reading, with 180,000 fewer jobs than a year ago with hospitality and retail worst hit.

Alex Hall-Chen, principal policy advisor for employment at the Institute of Directors, said: ‘The fact that the number of payrolled employees is down 180,000 on the year should be a wake-up call for the government. This fall is a direct result of the recent increase in employer’s National Insurance contributions and the upcoming Employment Rights Bill, the cumulative effect of which is that hiring employees has become a costlier and riskier proposition for businesses.

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