Labour workers’ rights overhaul to inflict ‘negative’ hit on economy, OBR says

Britain s fiscal watchdog has warned Labour s overhaul of workers rights will have a negative economic impact as the cost to businesses will far outstrip any boost to workers productivity. The government’s sweeping employment reforms in its landmark Employment Rights Act (ERA) have reduced the qualifying period for unfair dismissal to six months, removed the compensation cap, and strengthened trade union rights. The new laws are set to be rolled out over the next two years, with third-party harassment protection, which makes businesses directly liable for harassment staff experience from third parties, coming into effect on Friday. In its first assessment of the act s economic impact, the Office for Budget Responsibility (OBR) said, which assesses the government s fiscal policy, said the changes are expected to hit growth in the economy. Our analysis suggests that the ERA will likely have a negative economic impact from negative impacts on businesses, the OBR said in