The Business and Trade Committee has published its recommendations for the implementation of the Employment Rights Bill, which was introduced to Parliament in October last year.

The Committee’s report is intended to inform Parliament and the public about the potential impact of the Bill, which the Government has described as “the most significant update to workers’ rights in a generation” and highlight areas where amendments may be necessary before the legislation progresses further in the House of Commons.

The Committee’s recommendations focus on improving protections for workers on zero-hours contracts, strengthening industrial relations strategy and ensuring effective enforcement of new rights.

Key concerns include the need for clearer definitions of reasonable notice for shifts, compensation for cancelled work and the removal of references to a minimum number of hours. The report also calls for action on worker status to prevent loopholes in employment protections and urges the Government to align modern slavery legislation with international standards.

Calls for Stronger Industrial Relations Strategy

The Committee has recommended that the Government establish a long-term industrial relations strategy to ensure collective employment rights function effectively. It also highlights gaps in the Bill, such as the need for amendments to Section 54 of the Modern Slavery Act to improve transparency and due diligence in the private sector. Without these changes, there are concerns the UK could become a destination for goods produced with forced labour.

The report further stresses that the Fair Work Agency, which will be responsible for enforcing new labour rights, must be properly resourced – warning that without sufficient funding and enforcement mechanisms, the Bill’s provisions could be ineffective.

Ben Willmott, head of public policy at the CIPD, supported the call for greater resources for the Fair Work Agency but warned that this alone would not be enough to ensure compliance.

He said, “The Fair Work Agency will be just one part of the enforcement system and Acas also needs more resources if it is to support employers, particularly smaller firms, with compliance.

“More thought needs to go into how the measures in the Bill will be effectively implemented in workplaces to avoid leading to more workplace disputes and a sharp increase in employment tribunal claims. The Government should prioritise the development of an implementation plan and support for employers to prepare for the new regulations.”

He added that employer understanding and enforcement will be key.

Employment Rights Bill: Complexity and Implementation

The Recruitment and Employment Confederation (REC) has raised concerns over the complexity of the Bill and the potential burden on businesses. REC Chief Executive Neil Carberry stated that employers need clear and practical requirements, as well as sufficient time to adapt to new regulations. He warned that if more detail is added to the Bill, a longer timeline for implementation may be necessary.

Carberry also stressed the importance of collaboration between employers and trade unions. He said, “What the trade unions negotiated with Labour before the election is one thing, but good employment relations rely on bringing employers and employees together – not pre-election deals that are short on detail and long on potential economic damage. Let’s take time to talk and get things right.”

The REC also pointed to the financial pressures businesses face, including rising costs and recent National Insurance changes. Carberry noted that while some companies have been criticised for poor employment practices, most employers are committed to fair treatment of workers.

“They are suffering with a range of rising business costs, including the National Insurance changes brought in by the Budget. And they can only create jobs if their firms are sustainable,” Carberry  added. “A flexible labour market is critical to this, with different forms of work a fundamental part of generating opportunity and growth – not a route to avoiding anything.”

The Employment Rights Bill continues to progress through Parliament, with further scrutiny and potential amendments expected in the coming months.