LABOUR’S workers’ rights reforms will kill economic growth and send unemployment soaring, business chiefs warned yesterday.

Small firms blasted Deputy PM Angela Rayner’s “clumsy and chaotic” Employment Rights Bill.

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Bosses have raised fears the legislation may trigger a hiring freeze.

Tina McKenzie, at the Federation of Small Businesses, said: “This legislation is a rushed job, clumsy, chaotic and poorly planned.

“It lacks any real pro-growth element and will increase economic inactivity, jeopardising the Government’s employment target.”

Under the Bill, not set to come into force until Autumn 2026, workers will have Day One rights.

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Ms Rayner’s reforms will give 30 million workers immediate rights for paternity, parental and bereavement leave.

Statutory sick pay will be paid from the first day and working from home will become a new “default position”.

Zero-hours staff will also have a right to guaranteed hours contracts.

Writing in The Sun today, Euan Blair, tech entrepreneur and son of former PM Sir Tony, said: “If we focus too much on fixing the problems of yesterday, we risk failing to fix the problems of tomorrow.”

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Business Secretary Jonathan Reynolds said: “Our plan will see more Sun readers get security for the future while ensuring businesses are on a level playing field.”

Kevin Hollinrake, the Shadow Business Secretary, said: “Despite a chorus of opposition, Labour are rushing this legislation through to appease their union paymasters.”