LABOUR’S push to expand union rights will be the “nail in the coffin” for small businesses, entrepreneurs warned today.

Firms slammed Deputy PM Angela Rayner’s proposed workers’ rights law as “one of the most damaging proposals ever aimed” at the sector.

Under “pernicious” new rules, union chiefs would be given a legal right to enter any workplace, such as a bakery or hair salon, to recruit and organise.

Access to small and medium businesses would be enforceable even against an employer’s will, and bosses could be threatened with fines.

Meanwhile, the 40 per cent vote threshold for union recognition could be slashed to just 2 per cent of staff.

Furious entrepreneurs blasted the workers’ rights proposals as completely stacking power against the modest employer.

They demanded an exemption for small and medium sized firms, who employ 61 per cent of the private sector workforce.

John Longworth, Chair of the Independent Business Network, said: “The automatic right of access for unions to invade SMEs is one of the most pernicious aspects of the Employment Rights Bill.

“This is all about union power and union income.

“It’s likely to lead to business closures and higher unemployment.”

Roger Walters, Founder of Supercity Aparthotels, said: “This Bill is just another pop at capitalism.

“If it’s not defeated, Great Britain will become another Russia or North Korea.”

John Elliott, Founder of EBAC Dehumidifiers, added: “This is bad news.

“We all agree employees should have rights, but we need to explain to the public that employers have rights too.

“It should be an equal relationship.”

A Department for Business and Trade spokesperson said: “It’s not true that this bill will allow unions to turn up to workplaces unannounced.

“What it will do is make it easier to avoid costly disputes and ensure hard working people get a fair wage.

“The old laws didn’t work, and saw the UK lose more days to strike than France.”