Shadow business secretary Andrew Griffith has accused Labour of treating employers as “an afterthought” as the government pushes ahead with its Employment Rights Bill.

The legislation, championed by former deputy prime minister Angela Rayner, is facing mounting criticism from business groups, who warn it will burden firms with billions in additional costs.

“Instead of a shot in the arm, businesses are getting knives in the back,” Griffith said. “This bill was written by the unions, for the unions, and ministers have refused every sensible attempt to soften its impact.”

Proposals rejected by Labour MPs included keeping probation periods for new staff, consulting small businesses on the bill’s effects, and requiring at least 50 percent turnout for strike ballots. 

According to the government’s own figures, the legislation in its current form could still cost companies up to £5bn a year. Combined with higher national insurance contributions, the average business faces almost £1,000 in extra costs per worker annually. Griffith pointed to official data showing 142,000 payrolled jobs lost over the past year, with 90,000 in the hospitality sector alone. 

“We are seeing rising unemployment, falling vacancies, and investment fleeing our shores,” he said. “It’s time Labour listened to industry and scrapped this damaging Bill.”