More than two thirds (68 per cent) of Scottish employers expect costs to rise due to measures in the Employment Rights Bill, with over a fifth (22 per cent) likely to make redundancies as a result, according to research.

The Chartered Institute of Personnel and Development (CIPD) is calling on the UK government to work with the Scottish government to provide employers in Scotland with a plan and clear guidance to implement hundreds of new changes made to employment rights laws this week.

Employers in Scotland are already struggling to hire suitable talent, with the CIPD data revealing over a quarter of Scottish organisations (28 per cent) currently have hard-to-fill vacancies, and 50 per cent anticipate problems over the next six-months with recruiting staff.

In response, the professional body for HR and people development is calling on the UK government to prioritise creating an implementation plan and clear guidance to better support Scottish employers and reduce their likelihood of having to cut their headcount.

The new employment laws – expected to be come into effect from 2026 – include changes to unfair dismissal rules, statutory sick pay reforms and the right to guaranteed hours for those on zero hours contracts.

But the CIPD is warning that the scale and complexity of measures in the bill could compound challenges facing many employers in Scotland, following recent increases in employer National Insurance costs and the national living wage.

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