A new Employment Rights Bill is causing confusion among employers in the UK.

The bill, which has been described as the most significant upgrade to workers' rights in a generation, introduces 28 separate reforms.

The announcement last Thursday focused primarily on familiar aspects of the bill, which has left 34 per cent of employers feeling unsure about how the new laws will impact them, according to a poll by recruitment agency Robert Walters.

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The government also announced this week that there could be a rise in National Insurance tax, which could put further strain on budgets, wages and consumer prices.

Despite the uncertainty, the bill could encourage more than 43 per cent of professionals to look for new job opportunities, according to the poll.

However, a fifth of employers said they might shift their focus to hiring temporary and contract professionals.

Richard Harris, chief legal officer at the agency, said: "The government’s employment law overhaul is being touted as the most transformative in a generation - and for good reason.

"It’s geared towards protecting what Labour often calls 'working people' over 'corporate elites'.

"However, make no mistake—it will impact nearly every company.

“Understandably, it’s caused some worries for business. However, with the benefits for wider society, industry bodies and corporations may be tempered in their public stances on these concerns.

"It will be fascinating to see how consultations on the details play out.

"Certainly, smaller businesses and start-ups are more exposed to dealing with complexity, compliance costs and impact of things going wrong.”

Chris Eldridge, CEO of the firm said: "Companies across the UK will be forced to adapt and innovate in response to the bill.

"Whilst the longer-term repercussions are considered, we are likely to witness an increase in temporary and contract roles, as they look to exert more controls over staffing costs."

“We may also notice a more specific increase in temporary-to-permanent contracts implemented as a technique by employers looking to retain longer cost control or trial periods.

“With the Bill not set to come into effect until at least 2026, and the budget announcement mere weeks away, we will continue to keep an ear-to-the-ground for further announcements.”