Tensions are rising within the UK government over proposed workers’ rights reforms, as Deputy Prime Minister Angela Rayner faces opposition from Business Secretary Jonathan Reynolds.
The dispute centres on how quickly workers should receive full employment protections, a key part of Labour’s pledge to overhaul employment law.
Rayner is pushing for immediate rights for workers from the first day of employment, including protection from unfair dismissal, which currently requires two years of continuous employment. Under her plan, these rights would kick in after a brief probation period. Reynolds, however, is advocating for a longer probationary period—up to nine months—before workers can claim full protections, citing concerns that overly generous reforms could deter businesses from hiring and stunt economic growth.
Conversations between the two ministers have reportedly been “intense,” as Labour aims to finalise the reforms within its first 100 days in government. With just two weeks remaining to reach a consensus, time is running short.
Business Backlash
Business leaders have expressed concerns over Rayner’s proposals, warning that scrapping or significantly reducing probation periods could undermine the ability to evaluate new employees. A survey by the Confederation of British Industry (CBI) revealed that 62 percent of members, including major firms like AstraZeneca and PwC, believe the UK is becoming less attractive for investment, with looming employment law reforms cited as a key factor. The Institute of Directors (IoD) also reported a sharp drop in business confidence, linking the decline to fears over the proposed changes.
Executives worry the reforms could lead to a surge in costly and time-consuming unfair dismissal claims, adding a financial burden to businesses.
Labour’s Ambitious Agenda
The proposed reforms are part of Labour’s broader efforts to “make work pay” by improving workers’ conditions. In addition to reducing probationary periods, Labour plans to end zero-hour contracts, ban controversial “fire and rehire” practices, and increase the minimum wage. There are also proposals to give employees the right to request flexible working and a four-day workweek.
Despite the internal disagreements, both Rayner and Reynolds are reportedly committed to finding a compromise. The two ministers, who represent neighboring constituencies, have held joint meetings with business leaders and unions to clarify the scope of the reforms and address concerns.
Race Against the Clock
As the government prepares to unveil its employment rights bill next month, pressure is mounting to finalise the details. Labour is determined to push through the reforms within its self-imposed 100-day deadline, but sources suggest it’s still uncertain whether Rayner and Reynolds can reach an agreement in time.
A government spokesperson reiterated that balancing workers’ rights with economic growth remains a top priority, stating: “We are working in close partnership with business and civil society to find the balance between improving workers’ rights while supporting the businesses that drive the economy.”
With time running out, all eyes are on the government as it races to meet its ambitious targets for reform while addressing the concerns of both workers and employers.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
