UK Employment Rights Bill 2025: Key Reforms and Amendments

UK Employment Rights Bill 2025: Key Reforms and Amendments

The UK government has introduced amendments to its flagship Employment Rights Bill, ensuring that all British workers, including nearly a million agency workers, receive contracts reflecting the hours they regularly work. This bill represents a significant upgrade to workers rights in the UK.

Background

Originally set out in October, the Employment Rights Bill has been shaped by consultations with business groups and trade unions. The government has now published amendments ahead of the next stage in the parliamentary process.

Key Amendments

Protection for Agency Workers

One of the major amendments ensures that agency work cannot be used as a loophole to bypass the planned restrictions on exploitative zero-hours contracts. These contracts often fail to guarantee workers a minimum number of hours.

Guaranteed Hours Debate

While workers’ rights advocates support guaranteed hours, some business groups argue that such measures could make part-time jobs less viable and reduce business competitiveness by forcing employers to pay for unnecessary hours.

Additional Worker Protections

Other amendments to the bill include:

• Making statutory sick pay a legal right for all workers.
• Strengthening remedies against employer abuse of redundancy rules.
• Establishing a modern industrial relations framework.

Core Reforms Retained

Despite the amendments, the primary reforms proposed in October remain unchanged. These include:

• Ending fire-and-rehire practices.
• Expanding rights related to parental leave.

Political and Economic Implications

This legislation marks one of Prime Minister Keir Starmer’s most significant reforms since Labour’s election victory in July. The government aims to use these changes to prevent industrial action, which has previously disrupted services across the country.

Business Reactions

The Confederation of British Industry (CBI) has expressed concerns about the potential impact of the legislation. CBI CEO Rain Newton-Smith warned that excessive regulation could hinder job creation and economic growth.

Conclusion

The Employment Rights Bill, with its latest amendments, seeks to improve job security and worker protections. However, the debate continues between worker advocates and business groups regarding its long-term economic impact.

“UK Employment Rights Bill 2025: Key Reforms and Amendments” “UK Employment Rights Bill 2025: Key Reforms and Amendments”