Sir Keir Starmer’s employee plan might bankrupt UK corporations, Tories warn | Politics | News | EUROtoday

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Sir Keir Starmer dangers unleashing a wave of bogus class motion lawsuits which might bankrupt British companies beneath his employees’ plan, the Tories have warned.

The UK might grow to be a “hostile business environment” with a dramatic rise in US-style class actions due to Labour’s New Deal for Working People, it has been urged.

Policies which might result in extra claims embrace: a proper to change off which is able to see employees capable of carry motion if their bosses message them after 5pm, a proper to demand versatile engaged on day one and a ban on zero hours contracts.

A Conservative supply mentioned: “Labour’s New Deal for Working People will unleash a wave of US style class-action lawsuits in the UK which could bankrupt British businesses.

“British firms will be forced to set aside millions to pay for legal fees where they wish to dispute elements of Labour’s unclear plans for workers’ rights.

“Hard left American lawfare is coming to the UK under lawyer Sir Keir Starmer.”

Over half of US Fortune 1000 corporations face class motion claims every year, with authorized defence prices estimated to exceed $3.6 billion (£2.8 billion) in 2022.

UK corporations are being warned that they might want to put aside important sums of cash for sophistication actions if Labour wins the subsequent election.

The UK can not afford to create a extra hostile enterprise setting, campaigners have warned.

They mentioned the subsequent Labour Government should introduce a cap on the quantity that class motion regulation corporations can take from claimants.

Labour has been contacted for a remark.