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Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per year
['Felix Armstrong', 'Retail Reporter']
News Archives - City AM
Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per yearFirms have called on Burnham to reconsider the crackdown (Jack Taylor/PA Wire)Labour’s ‘chaotic’ crackdown on zero-hour contracts could cost businesses nearly £3bn every year, though firms have warned the real cost could spiral even higher.
The reforms could cost British firms as much as £2.9bn per year, though it said the alleged economic benefits of these policies mean the net average cost will be between £300m and £1.4bn.
The government’s more conservative “central” costing scenario has priced these new rules at £270m, £640m and £160m respectively, meaning the zero-hours crackdown would most likely cost firms £1.1bn each year.
A four-week notice period would cost businesses £1.2bn, while a one-week period would carry a £620m price tag.
While the government has conceded that these workers’ rights could cost firms as much as £2.9bn per year, industry bodies have warned that extra admin could mean this burden spirals higher.