From education to employment

2025s Amendments to the Employment Rights Bill

Changes to the Employment Rights Bill
  • The Government will lay amendments to the Employment Rights Bill following weeks of consultation with business groups and unions. 
  • The Bill will support the Government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive, and secure economic growth, delivering on the Plan for Change.
  • Improving workers’ rights is a key element of the government’s Plan for Change by putting more money in people’s pockets, improving working people’s day to day lives and delivering real life improvements felt by working people. 

The Government will today [Tuesday 4 March] table amendments to the Employment Rights Bill following weeks of consultation and responses from business groups, trade unions and wider civil society. 

These amendments demonstrate the Government’s commitment to working in partnership with businesses and trade unions to ensure the plan to Make Work Pay is firmly pro-business and pro-worker. 

Responses to five consultations ranging from zero-hours contracts to Statutory Sick Pay will also be published which show how the Government has listened to the views of stakeholders. 

The Government’s Plan to Make Work Pay is a core part of the mission to grow the economy, raise living standards and create opportunities for people across the country. These amendments will deliver on the Plan for Change by tackling the low pay, poor working conditions and poor job security that has been holding the UK economy back. 

This landmark Bill will extend the employment protections already given by the best British companies to millions more workers. This will put the UK back in step with competitors in other advanced economies, who are already acting to adapt to the changing world of work. 

The Bill’s impact assessment, which was published last year, showed that many of the policies within the Employment Rights Bill could help support the Government’s Mission for Growth.” It concluded that that the package could have “a positive but small direct impact on economic growth” and will “help to raise living standards across the country and create opportunities for all.” This is the result of a pro-business, pro-worker, approach which is going to help usher in a decade of national renewal. 

The Deputy Prime Minister Angela Rayner said:

For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.   

We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.   

We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change – unleashing growth and making work pay for everyone.

Business Secretary Jonathan Reynolds said:

Past Governments’ low growth and low productivity economy simply did not deliver what the UK needs, which is why we are choosing stability, investment and reform, not chaos, austerity and decline. This is why our mission to grow the economy as part of our Plan for Change is based on putting more money in working people’s pockets by making wages fairer and work more secure.  

Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction. We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow.

The amendments set out later today carefully consider different views and needs of workers, businesses and the whole economy and looks to deliver measures that support the mutual interests required to drive a growing, modern economy. We are delivering reform through our Plan for Change to create a decade of national renewal, meaning increased living standards across every part of the UK and putting politics back in the service of working people. 

They come following responses received to five Government consultations: 

  • Application of zero hours contracts measures to agency workersAll workers, including up to 900,000 agency workers in the UK, should be able to access a contract which reflects the hours they regularly work. These amendments will ensure that agency work does not become a loophole in our plans to end exploitative zero hours contracts. They will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice – whilst retaining the necessary flexibility for employers in how they manage their workforces.  
  • Strengthening remedies against abuse of rules on collective redundancyThe Government will increase the maximum period of the protective award from 90 days to 180 days and issue further guidance for employers on consultation processes for collective redundancies. Increasing the maximum value of the award means an Employment Tribunal will be able to grant larger awards to employees for an employer’s failure to meet consultation requirements. We want to enhance the deterrent against employers deliberately ignoring their collective consultation obligations and ensure it is not financially beneficial to do so. 
  • Creating a Modern Framework for Industrial RelationsThe government is updating the legislative framework in which trade unions operate to align it with modern work practices. We are ensuring industrial relations are underpinned by collaboration, proportionality, accountability, and a system that balances the interests of workers, businesses and the wider public, with further details in the consultation response.   
  • Strengthening Statutory Sick PayThe Government will ensure the safety net of Statutory Sick Pay is available to those who need it the most, making it a legal right for all workers for the very first time.  Up to 1.3 million employees on low wages who find themselves unable to work due to sickness will either receive 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay – whichever is lower. We are also ensuring employees have a right to Statutory Sick Pay from the first day of sickness absence, so they are able to take the time off they need to recover and stay in work rather than risk dropping out altogether. The changes will also reduce the amount of people going to work when ill and therefore the spread of infections in the workplace – boosting productivity and benefiting businesses. 
  • Tackling non-compliance in the umbrella company marketThe Government will act to ensure that workers can access comparable rights and protections when working through a so-called umbrella company as they would when taken on directly by a recruitment agency. Enforcement action can be taken against any umbrella companies that do not comply.  

A strong package of workers’ rights and protections goes hand in hand with a strong economy because a secure workforce will be more productive and have more confidence to spend in the economy. This contributes to growth – both through the work that people do, and the money that they spend. 

As well as creating protections for people at work, the Government is determined to create a modern economy that works for businesses and workers alike. We are delivering these reforms collaboratively, pragmatically, and in a reasonable timeframe where businesses can prepare.  

For businesses to thrive they must operate on a level playing field. The Fair Work Agency will take strong action against rogue employers that exploit their workers, and it will provide better support to the majority of businesses who want to do right by their staff. 

The Government will continue to hold continuous extensive engagement as we develop our Plan to Make Work Pay and as the details of these polices are developed. 

Paul Nowak, TUC General Secretary said:

Everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets. 

Policies like banning exploitative zero-hours contracts, ensuring protection from unfair dismissal from day one, and tackling ‘fire and rehire’ are long overdue and necessary. 

This is about creating a modern economy that works for workers and business alike. Driving up employment standards in Britain will stop good employers from being undercut by the bad and will mean more workers benefit from a union voice.

Jane Gratton, Deputy Director of Public Policy at the BCC, said:

Employers will be relieved to see some amendments, at what is clearly a milestone moment for Government. It has consulted business – and this is reflected in some of the decisions on the future shape of the legislation. There is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual, including the nine-month statutory probation period and the promise of a light touch approach. 

But businesses remain cautious, and it is important to continue ensuring the Bill strikes the right balance.  Employers will look forward to hearing, engaging with and shaping further detail. The government must continue its positive approach to engagement with firms and remain open to changes. Doing so will ensure this legislation is proportionate, affordable, and right for both firms and their employees.

Centrica Group Chief Executive, Chris O’Shea said:

We are fully supportive of this legislation. This isn’t just the right thing to do—it’s a foundation for the high-growth, high-skill economy the UK needs. While no one business has all the answers, our experience at Centrica shows that our business thrives when our people thrive – so stronger rights for workers mean stronger businesses, and that’s a win for everyone.  

As we look to invest billions in green energy, nuclear, and hydrogen storage, having a skilled and engaged workforce is critical to delivering on the UK’s energy security and net zero ambitions. The Government’s wider growth and energy missions rely on businesses and workers pulling in the same direction—I hope this Bill helps make that possible.

Julie Abraham, CEO of Richer Sounds said:

At Richer Sounds, we have always put the treatment and wellbeing of our colleagues at the forefront of everything we do.  Any responsible business will know that well-treated and well-paid colleagues will be beneficial in numerous ways.  

Happy colleagues are likely to be more productive. This also leads to reduced stock loss and higher staff retention, which in turn, minimises recruitment and training costs, not to mention disruption to established teams.  We support any government legislation that will help end exploitative working practices and improve the lives of working people.

Ann Francke OBE, Chief Executive Officer of the Chartered Management Institute (CMI), said:

The Employment Rights Bill represents a significant step forward in improving conditions for the UK’s workforce. Many of these measures reflect what successful, responsible and forward-looking employers are already doing.  

CMI has welcomed the Government’s collaborative approach in progressing this Bill, working alongside both businesses and unions to find the balance needed. The real key to success, however, will be the ability of skilled managers to implement these changes, ensuring they get it right and can deliver growth and productivity benefits for organisations whilst ensuring individuals are treated fairly.  

We look forward to working closely with the Fair Work Agency to ensure managers and leaders are equipped with the skills they need to navigate this milestone piece of legislation.

Simon Deakin, Professor of Law, University of Cambridge said:

The research we have done in Cambridge shows that on average, strengthening employment laws in this country in the last 50 years has had pro-employment effects.  

The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity. Labour laws also help ensure that growth is more inclusive and that gains are distributed more widely across society.

Claire Costello, Chief of People and Inclusion Officer – Co-op said:

The Co-op support the Government’s ambitions to strengthen rights for workers through the Employment Rights Bill. It’s our belief that treating employees well – a key objective of this Bill – will promote productivity and generate the economic growth this country needs.

Rain Newton-Smith, CEO, CBI, said: 

“The government has rightly won plenty of recent plaudits from business for their willingness to take tough decisions in the face of opposition that will help deliver the sustainable growth mission. But there is no getting away from the fact that this Bill will hinder the efforts of business to play their part in turning that mission into reality, at a time when many are continuing to struggle with the increasing cost of doing business.  

“The government has been commendably open to seeking feedback from industry about these plans. But businesses will remain deeply concerned that this willingness to engage has not translated into meaningful change to address several key areas where the legislation locks in an irreversible direction of travel. Many businesses have told us that it is the unintended consequences of how these policies will be pursued, not the ideas themselves, which will have damaging consequences for growth, jobs and investment. There is a real risk that this legislation imposes a thicket of regulation across all businesses which prevents them from creating the high-quality, secure jobs which we all want to achieve. 

 “Businesses are squarely behind this government’s growth mission, and their efforts to deliver it. A landing-zone that commands the confidence of businesses and workers can still be found by taking the time to build a consensus that will give these reforms the footing to have a lasting positive impact. Now is the moment to make building that consensus the north-star for the implementation of this package of reforms.” 

Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry said:

“Government says it is pro-business and targeting growth. Yet there are still clauses in the Bill that could put opportunities at risk for workers and further raise the costs for employers when taking a chance on people. On the positive side, there is still time to get things right in the Regulations which follow if government is led by what businesses and workers want now – a balance of flexibility and protection. 

“We welcome the government’s commitment to consultation and to handling much of the detail in the Bill via Regulations. This gives more time for discussions – but that has to lead to practical outcomes for businesses across the country. It is also great news that government has stepped back from the anti-growth idea of ending temp-to-perm fees.

“Many of our members and their clients will find it difficult to reconcile that these announcements are unequivocally pro-business and pro-worker if the detailed regulations to come don’t consider the costs to business from overly complex bureaucracy, and a lack of choice on how to employ agency workers who already have employment protections. The task at hand is to protect a temporary workforce roughly equivalent to the population of Birmingham and not undermine confidence amongst hirers of permanent staff. This poses a serious economic risk, at a time when building confidence in our economy is more important than ever – keeping people employed, supporting businesses, and strengthening the resilience of the labour market. We want the Bill to be a success, but for that to be the case, government will have to show it is listening to businesses and well as Trade Unions.” 

On the application of zero hours contracts measures to agency workers, Neil Carberry said:

“Agency workers are different to directly employed workers and have their own more stringent regulatory regime already. If government is serious about the longer-term interest of workers, growth, and competitiveness, it needs to change tack. We are worried that the current approach will drive serious non-compliance and false self-employment, at workers’ cost.”

On the announcement on umbrella companies, Neil Carberry said:

“Regulating the umbrella market closes a loophole in addressing non-compliance and is welcome. Recruiters have long called for regulations that ensure a level playing field. Like all aspects of the government’s changes, proper enforcement will be key to protecting both businesses and workers. The new Fair Work Agency needs to be well equipped financially to deal with this important additional bit of scrutiny.”

On the proposals to strengthen Statutory Sick Pay, Neil Carberry said:

“The expanding scope of SSP in principle is positive for many employees, and employers who want to retain staff by looking after them. But the proposals in the Bill will most likely place the burden of increased costs on agencies, not end hirers, given their ongoing struggles to reclaim SSP from client businesses. We urge the government to set SSP at a level that helps employers retain staff, rather than being forced into capability-based dismissals.”

Ben Harrison, Director of the Work Foundation at Lancaster University said

“We are now approaching crunch time for the Government’s Employment Rights Bill as it reaches report stage in Parliament. News this morning that the proposed ban of exploitative zero-hours contracts will include agency workers suggests Government intends to resist pressure to dilute reforms. Currently, over a million workers face unpredictable hours due to these contracts, undermining their financial stability and health. This reform will help ensure workers – especially those aged 16-24 who are 5.9 times more likely to be on zero-hour contracts than older workers – enter a labour market where good jobs offer both security and flexibility. 

“At a time of record sickness levels, worker shortages and rising numbers of young people out of work or education, improving job quality is essential. We cannot afford a system that traps people in precarious jobs or pushes them out of work altogether, and so it’s vital that the Government sticks to its guns and delivers on its ambition for the Employment Rights Bill in the weeks and months ahead.”

Dr Patrick Roach, General Secretary of NASUWT – The Teachers’ Union, said:

“Today’s announcements on the Employment Rights Bill are welcome progress towards greater employment protections for a just, democratic society. For too long, unscrupulous employers have acted with impunity and workers have – quite literally – paid the price.

“The amendments announced in the Bill, including those on the use of zero hours contracts, Statutory Sick Pay, and tackling non-compliance in the umbrella agency model will make a big difference to many teachers. Supply teachers in particular will benefit from these long overdue changes.

“We look forward to continued partnership with the government on this inspiring agenda for employment rights reform.”

Sirsha Haldar, General Manager for the UK and Northern Europe at ADP:

“While the decision to drop the ‘right to switch off’ policy removes a regulatory obligation, it does not diminish the importance of clear workplace boundaries. 

“In today’s always connected world, HR leaders play a crucial role in fostering a culture that respects employees’ time while ensuring business needs are met. Even in the absence of legislation, organisations should strive to establish clear policies on out of hours communication, set expectations around availability, and encourage leadership to model healthy work habits through open dialogue among managers and employees. A robust time and labour management system can help ensure accurate tracking of working hours, giving both employees and employers visibility over workloads.

“This proactive approach not only supports employee wellbeing and productivity but also strengthens engagement and retention in an increasingly competitive talent market”


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