Unions have warned that Labour’s landmark Employment Rights Bill risks being significantly weakened, after key ministers behind the proposed legislation were removed in a cabinet reshuffle and business groups renewed pressure to delay or dilute reforms.
The bill, which promises to ban zero-hours contracts, curb fire-and-rehire practices and offer earlier protection from unfair dismissal, is due to be voted on in Parliament in the coming weeks. It has been described as the most significant overhaul of UK employment law in a generation.
But following the sudden departure of Angela Rayner as deputy prime minister last week and the sacking of employment minister Justin Madders, trade unions say they are concerned the government may backtrack on its commitments.
‘Huge mistake’ to back down, says Unison chief
Christina McAnea, general secretary of Unison, said she was “genuinely concerned” that the government was losing its resolve to push the bill through in full.
“It doesn’t send out a very good message that the people who were absolutely committed to driving through the Employment Rights Bill are no longer doing those jobs,” she told the BBC.
McAnea, who rarely criticises the government publicly, called the legislation a “once-in-a-lifetime opportunity” to improve protections for working people and warned that any attempt to “pull back” would be met with a fierce response.
“We will do everything we can to make sure this is not watered down. We’re expecting a clear timetable, and if that doesn’t happen, there will be some very, very unhappy trade union leaders around, including me.”
Fractured support after reshuffle
Concerns intensified after Labour removed several senior figures closely associated with the bill, including Madders and business secretary Jonathan Reynolds, who has been moved to chief whip.
Sharon Graham, general secretary of Unite, said the changes signalled “a move in the wrong direction” and accused the government of already weakening parts of the bill. She pointed to recent amendments that would still allow local councils, such as Birmingham, to impose fire-and-rehire tactics during financial emergencies.
“Labour’s promise to ban fire and rehire is now a burned-out shell,” she said. “Workers will feel duped when they realise the bill is a paper tiger.”
The Bakers, Food and Allied Workers’ Union, the PCS public sector union and the RMT transport union are among those calling for ministers to “finish the job” and ensure protections cannot be circumvented by employers. They also want greater clarity on employment status to prevent fake self-employment, particularly in the gig economy.
Business lobby pushes back
Business groups have welcomed the reshuffle as an opportunity to soften the bill’s impact. Craig Beaumont, policy director at the Federation of Small Businesses (FSB), told the BBC that 92 percent of its members were worried about the legislation.
“They are overwhelmed by the changes that are coming. They don’t have HR teams. All these different measures scare them, and this is a chance to fix the issues.”
He said recent polling of small employers showed unprecedented levels of concern, describing the post-Rayner reshuffle as a chance to “fix” the bill.
One key area of tension is a Lords amendment that would change the proposed right to a guaranteed-hours contract into a right to request one. The retail union USDAW, which represents more than 300,000 workers, said this would erode legal protections by removing an employer’s obligation to reflect regular working patterns in contracts.
Starmer’s silence deepens concern
TUC general secretary Paul Nowak, speaking at union’s annual congress in Brighton at the weekend, said the umbrella group expected Labour to deliver the bill in full.
“My message to the government is: stay on course, deliver the Employment Rights Bill, and deliver it in full,” he told the BBC. “There is nothing to gain from watering down this flagship piece of legislation,” he said separately in Brighton.
He also warned against any temptation to offer compromises to employers. “Having people in well-paid, secure employment is good for everybody… It’s good for the good employers who are being undercut by the cowboys, and it’s good for the UK economy.”
Although Labour has insisted it remains committed to the reforms, Prime Minister Sir Keir Starmer’s decision not to attend the TUC Congress has fuelled anxiety among union leaders.
Former minister Justin Madders, who had helped drive the bill through Parliament, warned on X that it would be “really, really foolish” for Labour to retreat on what he called a key manifesto pledge.
MPs are expected to review amendments made in the House of Lords next week. Both unions and business leaders believe much of the bill’s final impact will depend on how it is implemented through secondary legislation — and whether Starmer’s reshuffled team has the appetite to see it through.
