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Employers Plan Hiring Cuts Amid New Labour Law Reforms

2/16/2026

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Story summary
  • Chartered Institute of Personnel and Development (CIPD) finds over a third of employers plan to reduce permanent hiring due to labour law reforms.
  • Hiring intentions are at their lowest level, excluding the initial COVID year, signaling a potential slowdown.
  • In December, Labour Party government led by Prime Minister Keir Starmer won parliamentary approval for the Employment Rights Act.
  • The Act adds sick pay, zero-hours contracts, and union rights.