{
  "id": 17251971,
  "title": "Next phase of workers rights overhaul risks hammering ‘labour market’",
  "url": "https://urgent.news/2026/10/30/next-phase-of-workers-rights-overhaul-risks-hammering-labour-market",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-30T16:02:12.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/next-phase-of-workers-rights-overhaul-risks-hammering-labour-market/"
  },
  "original_language": "en",
  "account": "The next phase of the UK government's workers rights overhaul may pose challenges for the labour market, according to experts. The changes, part of the landmark Employment Rights Act (ERA), come into effect on Friday and include tighter protections for employees, such as granting trade unions greater access and making businesses directly liable for staff harassment from third parties. These reforms, which have already reduced the qualifying period for unfair dismissal to six months and removed the compensation cap, are due to be rolled out over the next two years.\n\nHowever, Tania Goodman, a partner and head of employment at Collyer Bristow, warns that the new laws could negatively impact the labour market. She explains that while the laws are \"well-meaning,\" they may make employing staff more expensive and complex, leading to a risk of adverse effects on the labour market. Employers are already assessing the implications of the reforms, such as the move towards unfair dismissal protection at an earlier stage of employment, and some are reviewing their current workforce and future staffing requirements.\n\nRichard Harvey, a partner at Fisher Phillips, advises businesses to prepare for the changes by organizing their procedures, deciding who handles requests, and determining how workplace access, confidentiality, and data protection will operate. However, he stresses that employers should also focus on their relationship with their workforce, communicating openly and addressing concerns early to navigate the changes successfully. The Office for Budget Responsibility (OBR) predicts that the reforms will have a negative impact on the economy due to the increased costs to businesses outweighing any productivity boost for workers. The Recruitment and Employment Confederation (REC) shares this concern, stating that the reforms are a \"fresh blow to UK growth\" and that the government must address the additional costs and create better conditions for hiring more people to drive economic growth.",
  "summary": "The latest phase of the government’s workers rights overhaul may have “an adverse impact on the labour market”, experts have warned, as businesses deal with the costly implications of taking on new staff. Taking effect on Friday, the next stage of the overhaul comes as part of the government’s sweeping employment reforms in its landmark [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}