Britain’s political landscape is once again gripped by a fierce debate over the future of workers’ rights, as trade unions, business leaders, and politicians clash over the fate of the much-anticipated Employment Rights Bill. This landmark legislation, which Labour pledged during its 2024 election campaign, is poised to become law in the coming weeks. Yet, recent cabinet reshuffles and mounting economic pressures have cast uncertainty over whether the bill will be delivered in full—or watered down in the face of business opposition.
The controversy erupted following the removal of some of the bill’s strongest supporters from government. Angela Rayner, previously deputy prime minister and a key advocate for workers’ rights, was ousted in a reshuffle that also saw employment minister Justin Madders depart. Their exits have unsettled union leaders, who gathered this week at the Trades Union Congress (TUC) in Brighton to voice their concerns. As reported by the BBC and Sky News, many fear that Labour’s commitment to the bill may be wavering just as it stands on the brink of becoming law.
Christina McAnea, general secretary of Unison—the UK’s largest trade union with over one million members—did not mince words. “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. For McAnea, the legislation represents a “once-in-a-lifetime opportunity” to shift the balance of power “slightly in favour of working people.” She warned, “Any attempt to pull back would be a huge mistake. Unions will furiously campaign against it. We are expecting a clear timetable, and if that doesn’t happen there will be some very unhappy trade union leaders around—including me.”
Her concerns were echoed by other union chiefs. Sharon Graham, general secretary of the Unite union, told the BBC’s Today programme, “They made a promise to the British people... that they would make work pay. The mood music wasn’t looking too good and what I do hope is that they don’t intend on now slowing this down or indeed scrapping some parts of it altogether.” Graham accused ministers of “saying different things” to union officials and business leaders, stoking suspicions that the government might be preparing to dilute or delay the bill.
At the heart of the legislation are sweeping reforms: protections against unfair dismissal, a ban on “exploitative” zero-hours contracts, and broader measures designed to rebalance workplace power in favor of employees. For many, it’s a long-overdue shake-up. Paul Nowak, general secretary of the TUC, remains cautiously optimistic. “This bill will give a massive boost to rights for millions of working people in insecure, low-paid employment,” Nowak told Business Matters. “My message to the government is simple: stay on course, deliver the Employment Rights Bill, and deliver it in full.”
But the path to enactment is fraught with obstacles. The USDAW union, which represents more than 300,000 supermarket, warehouse, and factory workers, is particularly alarmed by a July amendment from the House of Lords. The change would water down the bill’s guarantee of set working hours, shifting from a requirement for employers to offer guaranteed hours to a weaker right for workers to merely request them. USDAW fears this would leave many shift workers still vulnerable to unpredictable schedules and insecure contracts—effectively keeping exploitative zero-hours arrangements alive.
Meanwhile, business groups are sounding the alarm about the bill’s potential impact. Craig Beaumont, policy director at the Federation of Small Businesses (FSB), highlighted widespread anxiety among small employers. “In some of our recent polling, 92% of small employers said they were worried about this legislation. They don’t have HR teams and they feel overwhelmed by the scale of change,” Beaumont told the BBC. He argued that the recent reshuffle, which saw both Rayner and Madders leave their posts, presents an opportunity for compromise. “This is a chance to fix the issues,” he said, suggesting the government could use the moment to address business concerns.
Luke Johnson, director of the bakery chain Gail’s, went further, claiming that “every single major business or employer organisation opposes this bill.” He argued that so-called “day one rights”—which would allow workers to claim unfair dismissal and request flexible working from their first day on the job—could discourage investment and job creation. “If you increase the cost of employing people, you will increase the prices of things in the High Street,” Johnson said, advocating for a return to the current two-year probationary period before full rights kick in.
On the political front, the stakes are high for Labour. The Employment Rights Bill was a flagship promise, designed to cement the party’s support among working people. But with the economy under strain and Labour losing ground to Reform UK and other parties, some MPs worry that ministers may be tempted to “drag their feet on implementation as an olive branch to business,” as one senior Labour MP confided to the BBC. The specter of a diluted or delayed bill looms large over the government’s first year in office.
Paul Nowak, in his keynote speech to the TUC conference, did not hold back in his criticism of Labour’s performance. “For too many people, change still feels like a slogan, not a lived reality,” Nowak declared, according to Sky News. He demanded that the government deliver on its manifesto commitments, including the Employment Rights Bill, and called for a November budget that would introduce windfall taxes on bank profits and gambling companies, a wealth tax on millionaires, and the lifting of the two-child benefit cap. “Deliver the change people voted for,” Nowak insisted. “And show working-class communities whose side you are on.”
The Conservative Party, for its part, has seized on the moment to pressure Labour from the opposite direction. In a letter to the new business and trade secretary Peter Kyle, shadow business secretary Andrew Griffith argued that the bill “will reduce jobs and mean more red tape and bureaucracy.” He urged the government to shelve the legislation, claiming that “any credible ‘reset’ of this government requires that this bill be shelved and the government look afresh at measures to promote the growth and competitiveness of the UK economy.”
With expectations running high and the political winds shifting, the fate of the Employment Rights Bill hangs in the balance. Unions stand ready to mount fierce opposition to any retreat, while business groups push for significant revisions. For Sir Keir Starmer and his government, the coming weeks will be a test of resolve: can they deliver the transformative change promised to working people, or will compromise and delay erode the bold ambitions that swept them into office?
As the debate intensifies, one thing is clear—Britain’s workers, employers, and politicians are all watching closely to see if Labour can turn its promise of change into reality.
