Mr Soames said the legislation would compound the harm done by Rachel Reeves’s £25 billion raid on employers’ national insurance
Speaking about the impact on business, he said: ‘I think not only will they not employ, I think they will let people go. I think there could be quite an ugly rush before some of these things come into force.
He added: ‘Many workers already deliver higher workers’ rights because it is in their own interests.’
He told BBC radio Four’s Today programme that the legislation would drive up unemployment.
But protection from other types of harassment raises ‘complex questions’ and the EHRC is worried about the effects on free speech.
The proposed legislation, which is expected to come into force next year, puts a duty on employers to prevent workers from being harassed by third parties such as customers.
Labour’s proposed workers’ rights charter, expected to come into force next year, has so far proved controversial
The controversial charter risks becoming ‘an adventure playground for employment rights lawyers’, according to a leading industry voice.
That could prove difficult from employers to enforce, the Equality and Human Rights Commission (EHRC) has warned, when it applies to more philosophical debates in venues like pubs, The Times reported.
The government said the threshold for what constitutes harassment is high.
The Employment Rights Bill will bring in guaranteed hours provisions on zero-hours contracts and allow workers to bring unfair dismissal claims from the first day of employment.
Downing Street said ministers would continue to ‘engage’ with business on the detail of the legislation, but insisted the government was committed to it.
CBI president Rupert Soames said Labour’s workers’ rights bill would costs jobs and hit growth
The EHRC told The Times that many employers may not understand what counts as a topic protected by equality law.
Kate Nicholls, chief executive of UKHospitality, said employers who don’t understand the complexities of equality legislation could ‘impose disproportionate restrictions’.
