More than two in three UK firms think employment legislation changes, such as the phasing out of the default retirement age (DRA), will hit economic recovery and job creation in the year, according to research from international law firm Freshfields Bruckhaus Deringer.

While more than half support the government’s decision to phase out the DRA from 6 April, 68% believe it has more potential to damage economic recovery and job creation in the short term compared to other legislative changes.

Caroline Stroud, co-head of Freshfields’ London employment practice, says: “There’s no doubt that removing the DRA has led to widespread concern about the effects on the workforce and the implications for businesses and the economy as a whole. Despite these apprehensions, it’s clear that a majority of employers accept that it’s a necessary step to take as more people want to work beyond 65 or simply cannot afford to retire.”