Business
Workers’ rights reforms will cost billions less after concessions, analysis shows
Archie MitchellBusiness reporter
Getty ImagesA series of concessions on Labour’s flagship workers’ rights reforms will cut the cost to firms adopting them by billions of pounds, a government impact assessment shows.
An initial analysis by officials found that implementing the party’s measures to bolster workers’ rights would cost firms up to £5bn a year.
However, an updated analysis on Wednesday, which took into account major concessions made by ministers, said it will now cost companies £1bn a year.
The concessions were welcomed by business groups, but faced fierce criticism from some left-wing Labour MPs and union leaders.
The Employment Rights Act will give workers access to sick pay and paternity leave from the first day on the job and introduce new protections for pregnant women and new mothers.
In November, Labour dropped plans to give all workers the right to claim unfair dismissal from their first day in a job. Instead, it will bring in enhanced protections after six months in employment, the bill’s most significant measure.
Alongside concessions on unfair dismissal, the government will phase in the overall package over several years, with many of the measures still subject to consultation and secondary legislation.
The revised impact assessment also said the lower cost estimate reflected “clearer implementation timelines” and more available evidence about the policies.
But the British Chambers of Commerce said the £1bn figure “is likely to be a massive underestimate”.
Policy director Kate Shoesmith said: “The impact figure doesn’t adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.
“Concessions such as introducing the six-month qualifying period will reduce costs – but not on the scale this latest assessment suggests.”
The shadow business and trade secretary, Andrew Griffith, said: “The government spent a whole year denying it, but even after they fudged the figures to favour them, the truth is clear: their Unemployment Act will cost businesses billions.
“They have also been forced to admit it will cost young and vulnerable people their jobs – just as we always warned.”
The latest impact assessment also said the Employment Rights Act would have a small positive impact on employment, boosting the amount of people in work by 0.1%.
It also said the new measures could have a “small, positive direct impact on economic growth”.
Meanwhile, stronger workers’ rights could benefit about 18 million workers, up from an earlier estimate of around 15 million, the analysis showed.
Trade unions welcomed the latest impact assessment, saying it would bring “significant benefits to UK workers, our economy and wider society”.
The Trades Union Congress (TUC) said stronger rights at work are “good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand”.
Its general secretary Paul Nowak called for ministers to “finish the job as soon as possible”, warning that secondary legislation to bring in the measures must be “watertight”.
Mike Clancy, general secretary of the Prospect trade union, said: “This impact assessment is clear that the Employment Rights Act is good for workers, good for growth, and good for wider society.
“The sensible compromises agreed between Government, businesses, and trade unions were intended to make this legislation more workable for all parties, while still delivering robust protections for workers, and this report clearly demonstrates the success of that approach.”
The Department for Business and Trade (DBT) said the Employment Rights Act will “transform the world of work, delivering stronger protections and higher living standards”.
A spokesperson said: “By making work pay, and more secure, this new analysis demonstrates how it will boost productivity, cut staff turnover, and put more money in the pockets of working people.”
New Delhi: Equity mutual fund (MF) inflows stood at Rs 28,054 crore in the month of December as systematic investment plans (SIPs) scaled a fresh record high last month, according to the Association of Mutual Funds in India (AMFI) data released on Friday.
The monthly mutual fund SIP inflows reached a new record high in December at Rs 31,002 crore, compared to Rs 29,445 crore in November. The SIP investments rose by 5 per cent and 17 per cent on a monthly and yearly basis, respectively.
Gold ETFs also registered strong inflows of Rs 11,647 crore in December, higher than Rs 3,742 crore in November, showed the AMFI data.
Flexi-cap funds witnessed a sharp pickup in inflows, reflecting investor preference for strategies that offer allocation flexibility across market capitalisations amid evolving market conditions.
The mutual fund industry reported an overall net outflows of Rs 66,571 crore in December. Hybrid schemes attracted inflows of Rs 10,756 crore, while ‘other schemes’, including ETFs, saw net inflows of Rs 26,723 crore.
Overall, the flow trend suggests that equity participation remains structurally intact, but investors are becoming more discerning, with greater emphasis on portfolio balance, diversification, and risk management rather than broad-based risk-taking, said Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India.
Flows remained resilient despite intermittent market volatility, supported by steady SIP contributions and continued confidence in India’s long-term growth outlook, he added.
Amid rising participation from Gen Z, women and households from smaller cities and towns, India’s mutual fund industry, especially the SIPs, are set to witness robust growth in 2026.
Investors have poured over Rs 3 lakh crore into mutual fund schemes through systematic investment plans until November, for the first time in a calendar year. The data from AMFI showed earlier that SIP inflows in the calendar year touched Rs 3.04 trillion (lakh crore) for the first time, up from Rs 2.69 trillion in 2024.
SIPs have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to ICRA Analytics. India’s mutual fund industry’s assets under management (AUM) may surpass Rs 300 trillion by 2035, it added.
Business
Bought 3BHK Flat Without Any Fancy Job Or Inheritance; CA Explains Real-Life Story Of Surat Man
New Delhi: Chartered accountant Nitin Kaushik recently posted on X the real-life story of a person who purchased a 3BHK apartment in Surat for Rs 55 lakhs without an inheritance or fancy career but with consistent discipline.
Kaushik said that he had recently met a person who despite not belonging to any privileged background, recently bought a 3BHK apartment in Surat for Rs 55 lakhs. Kaushik said this man’s simple story will “change your view on wealth”.
How a Simple Story Change your View on “Wealth”
A few weeks ago, I met someone-not from a privileged background-who recently bought a 3BHK apartment in Surat worth _55 lakhs.
No inheritance, no fancy job, no startup exit-just steady discipline.___#stockmarket_ pic.twitter.com/WBBgtGGyx3
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) January 7, 2026
When Kaushik asked the person how he managed the purchase of the home the person said that he had saved Rs 45 lakhs over 12 years and took a home loan of Rs 10 lakh. “No panic about EMIs or inflation. Just quiet confidence and planning,” Kaushik said.
Kaushik said, “This was not overnight success.” The man saved consistently through recurring deposits, gold savings schemes and local real estate investments in his village near Surat. Kaushik said that consistency added with patience over 12 years is the key to the man’s success.
The person already owned a two-storey home and a small commercial shop in the village, which were both rented out. The rental inflows were roughly Rs 22,000 per month. “Every rupee saved or reinvested, building more wealth quietly,” wrote Kaushik.
According to Kaushik, the person accumulated over Rs 40 lakh through consistent saving and reinvestment, without using stocks or mutual funds. The man’s accumulation of wealth showed that “wealth is not about quick compounding but long term discipline. Many chase complex, risky strategies, but steady, patient investing builds real wealth brick by brick,” he said.
According to Kaushik, wealth develops based on how long you stick to your discipline and not how much you make. “Wealth grows by how long you hold your discipline, not just by how much you earn. Even small streams, flowing steadily, become rivers. Formula for success is Consistency × Patience × Simplicity. Anyone can start this today no matter your income level,” Kaushik said.
Last Updated:
Telecom operator Vodafone Idea on Friday laid out a detailed repayment roadmap for its adjusted gross revenue (AGR) liabilities; Know details
Vodafone Idea Share Price
Telecom operator Vodafone Idea on Friday laid out a detailed repayment roadmap for its adjusted gross revenue (AGR) liabilities, under which it will service a portion of the dues at a maximum of Rs 124 crore per year over a six-year period.
The company’s shares rose about 6% in early trade after the announcement.
In December, Reuters had reported that the Indian government approved a partial moratorium on Vodafone Idea’s dues, freezing payments of about $9.76 billion and pushing a large part of the repayment burden into the 2030s.
In its stock exchange filing, Vodafone Idea said its AGR liabilities — including principal, interest, penalty and interest on penalty for FY2006-07 to FY2018-19 — outstanding as of December 31, 2025, will be frozen and repaid in a phased manner.
As per the Department of Telecommunications (DoT) communication, the company will pay up to Rs 124 crore annually for six years from March 2026 to March 2031. This will be followed by payments of Rs 100 crore per year for four years from March 2032 to March 2035.
The balance AGR dues will then be cleared in equal annual instalments over six years from March 2036 to March 2041.
Vodafone Idea also said the DoT will constitute a committee to reassess the AGR dues, and the committee’s decision will be final. After the reassessment, the revised AGR amount will be repaid in equal annual instalments between March 2036 and March 2041.
The development is expected to remain in focus for investors, given Vodafone Idea’s stretched balance sheet and the critical role AGR relief plays in its long-term financial stability.
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January 09, 2026, 09:50 IST
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