Employment Rights Bill strengthens workforce

These changes follow extensive consultation with business groups and trade unions, demonstrating a commitment to both employers and employees.

The amendments aim to support the Government’s Plan for Change by tackling low pay, improving job security, and ensuring fair working conditions. The Employment Rights Bill seeks to align UK employment protections with those in other advanced economies, making the UK more competitive in the global market.

Deputy Prime Minister Angela Rayner said we are turning the tide with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs. She emphasised that collaboration with businesses and workers has been vital in shaping these changes.

Business Secretary Jonathan Reynolds said past Governments’ low growth and low productivity economy simply did not deliver what the UK needs, which is why we are choosing stability, investment and reform, not chaos, austerity and decline. He highlighted that making wages fairer and work more secure will benefit both businesses and the economy as a whole.

The amendments address several key areas, including:

• Zero-hours contracts: Ensuring agency workers have access to contracts that reflect their regular working hours, while still providing necessary flexibility for employers.
• Collective redundancy rules: Doubling the maximum protective award for employees from 90 days to 180 days to strengthen deterrence against non-compliance.
• Industrial relations framework: Updating legislation to reflect modern work practices while balancing the interests of workers, businesses, and the public.
• Statutory Sick Pay: Making it a legal right for all workers and ensuring support from the first day of illness.
• Umbrella company market regulation: Closing loopholes to ensure all workers receive comparable rights and protections.

Paul Nowak, TUC General Secretary, said everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets.

Employers have also welcomed the changes, recognising their potential to enhance productivity and employee retention. Jane Gratton of the British Chambers of Commerce noted there is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual. However, she urged the Government to continue engaging with firms to strike the right balance.

Centrica Group Chief Executive Chris O’Shea said we are fully supportive of this legislation. This isn’t just the right thing to do—it’s a foundation for the high-growth, high-skill economy the UK needs. He stressed that stronger rights for workers translate into stronger businesses and economic growth.

The Fair Work Agency will oversee enforcement to ensure compliance while supporting responsible businesses. The Government remains committed to ongoing engagement with stakeholders to refine policies further. With these measures, the UK is poised for a decade of national renewal, increasing living standards and creating a fairer workplace for all.