Labour MPs force through workers’ rights overhaul despite fears small businesses will be smashed by multi-billion pound costs and powers for unions [Video]

04:20 EDT 22 Oct 2024, updated 04:33 EDT 22 Oct 2024

Labour punched its controversial workers’ rights reforms through the Commons last night despite a backlash from MPs over the £5billion cost to businesses.

The Employment Rights Bill, which hands staff a slew of new rights regarding sick pay, flexible working and paternity leave, was passed with a majority of 281.

But it came after Angela Rayner had faced a major backlash from opposition MPs, after an impact assessment produced by the government suggested it would hammer firms.

It suggested that the reforms, which are now almost certain to become law, could lead to a fall in investment, job cuts and increased industrial action. 

Shadow business secretary Kevin Hollinrake argued the Employment Rights Bill would create ‘an existential crisis of a magnitude not seen since the pandemic’ for smaller companies. He called for them to be spared some of the provisions. 

During the debate, Mr Hollinrake, who co-founded an estate agents …