Zarah ChoudharyThe Government will today table amendments to the Employment Rights Bill following weeks of consultation and responses from business groups, trade unions and wider civil society.
Responses to five consultations ranging from zero-hours contracts to Statutory Sick Pay will also be published.
These amendments will deliver on the Plan for Change by tackling the low pay, poor working conditions and poor job security.
This Bill will extend the employment protections already given by the British companies to millions of more workers.
The Deputy Prime Minister, Angela Rayner, said: “For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.
“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.
“We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change – unleashing growth and making work pay for everyone.”
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.
“This is why our mission to grow the economy as part of our Plan for Change is based on putting more money in working people’s pockets by making wages fairer and work more secure.
“Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction.
“We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow.”
The amendments set out later today aim to deliver measures that support mutual interests and drive a growing economy.
In relation to zero-hours contracts and agency workers, the Government will ensure that all workers, including up to 900,000 agency workers in the UK, have access to contracts that reflect the hours they regularly work.
The amendments will prevent agency work from becoming a loophole in efforts to end exploitative zero-hours contracts.
They will also offer increased security by guaranteeing reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed, or moved at short notice, while maintaining necessary flexibility for employers in workforce management.
To strengthen remedies against the abuse of rules on collective redundancy, the Government will increase the maximum period of the protective award from 90 days to 180 days and issue further guidance for employers on consultation processes.
This increase in the maximum award value means that an Employment Tribunal will be able to grant larger awards to employees when employers fail to meet consultation requirements.
The aim is to deter businesses from deliberately ignoring collective consultation obligations and to ensure there is no financial advantage in doing so.
The Government is also updating the legislative framework for industrial relations to align with modern work practices.
Additionally, the Government is taking steps to strengthen Statutory Sick Pay (SSP) by making it a legal right for all workers for the first time.
Up to 1.3 million low-wage employees who are unable to work due to sickness will receive either 80% of their average weekly earnings or the current rate of SSP—whichever is lower.
These changes will reduce the number of people attending work while ill, thereby limiting the spread of infections in the workplace, boosting productivity, and benefiting businesses.
Finally, the Government will tackle non-compliance in the umbrella company market to ensure that workers receive the same rights and protections as they would when employed directly by a recruitment agency.
Reaction:
Paul Nowak, general secretary at TUC:
“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.
“Policies like banning exploitative zero-hours contracts, ensuring protection from unfair dismissal from day one, and tackling ‘fire and rehire’ are long overdue and necessary.
“This is about creating a modern economy that works for workers and business alike.
“Driving up employment standards in Britain will stop good employers from being undercut by the bad and will mean more workers benefit from a union voice.”
Jane Gratton, deputy director of public policy at the BCC:
“Employers will be relieved to see some amendments, at what is clearly a milestone moment for Government.
“It has consulted business – and this is reflected in some of the decisions on the future shape of the legislation.
“There is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual, including the nine-month statutory probation period and the promise of a light touch approach, as well as simplifying rules on collective consultation.
“But businesses remain cautious, and it is important to continue ensuring the Bill strikes the right balance.
“Employers will look forward to hearing, engaging with and shaping further detail.
“The Government must continue its positive approach to engagement with firms and remain open to changes.
“Doing so will ensure this legislation is proportionate, affordable, and right for both firms and their employees.”
Chris O’Shea, chief executive at Centrica Group:
“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.
“While no one business has all the answers, our experience at Centrica shows that our business thrives when our people thrive – so stronger rights for workers mean stronger businesses, and that’s a win for everyone.
“As we look to invest billions in green energy, nuclear, and hydrogen storage, having a skilled and engaged workforce is critical to delivering on the UK’s energy security and net zero ambitions.
“The Government’s wider growth and energy missions rely on businesses and workers pulling in the same direction—I hope this Bill helps make that possible.”
Julie Abraham, CEO of Richer Sounds:
“At Richer Sounds, we have always put the treatment and wellbeing of our colleagues at the forefront of everything we do.
“Any responsible business will know that well-treated and well-paid colleagues will be beneficial in numerous ways.
“Happy colleagues are likely to be more productive.
“This also leads to reduced stock loss and higher staff retention, which in turn, minimises recruitment and training costs, not to mention disruption to established teams.
“We support any Government legislation that will help end exploitative working practices and improve the lives of working people.”
Ann Francke OBE, CEO of the Chartered Management Institute (CMI):
“The Employment Rights Bill represents a significant step forward in improving conditions for the UK’s workforce.
“Many of these measures reflect what successful, responsible and forward-looking employers are already doing.
“CMI has welcomed the Government’s collaborative approach in progressing this Bill, working alongside both businesses and unions to find the balance needed.
“The real key to success, however, will be the ability of skilled managers to implement these changes, ensuring they get it right and can deliver growth and productivity benefits for organisations whilst ensuring individuals are treated fairly.
“We look forward to working closely with the Fair Work Agency to ensure managers and leaders are equipped with the skills they need to navigate this milestone piece of legislation.”
Simon Deakin, professor of Law, University of Cambridge:
“The research we have done in Cambridge shows that on average, strengthening employment laws in this country in the last 50 years has had pro-employment effects.
“The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity.
“Labour laws also help ensure that growth is more inclusive and that gains are distributed more widely across society.”
Claire Costello, chief of people and inclusion officer at Co-op:
“The Co-op support the Government’s ambitions to strengthen rights for workers through the Employment Rights Bill.
“It’s our belief that treating employees well – a key objective of this Bill – will promote productivity and generate the economic growth this country needs.”
Neil Carberry, CEO at Recruitment and Employment Confederation:
“Regulating the umbrella market closes a loophole in addressing non-compliance.
“Recruiters have long called for regulations that ensure a level playing-field. Like all aspects of the Government’s changes, proper enforcement will be key to protecting both businesses and workers.”
Ben Willmott, head of public policy at the CIPD:
“It’s positive we’re starting to see more detail on some of the provisions in the bill which will help employers plan for the future.
“However, the sheer number of amendments to this legislation published by the government underlines the size and complexity of this bill for employers.
“The government must ensure that, through consultation, the detail of the measures are workable and can improve workplace practices.
“Just as important, the Government needs to urgently prioritise an implementation plan, working with the CIPD and other employer organisations, including a clear phased timeline, alongside support and guidance for employers.”
