Biggest upgrade to workers’ rights in a generation comes one step closer

16th September 2025

After Angela Rayner’s departure, the ministerial responsibility for the Workers’ Rights / Employment Rights Bill now lies with Peter Kyle, who is the Secretary of State for Business and Trade.

Employment Rights Bill returns to the Commons, marking another step towards transformation of workers’ rights.

Legislation will establish day one rights to parental leave, end exploitative zero-hours contracts and strengthen statutory sick pay
Reforms will put more money in people’s pockets and improve living standards, delivering on the government’s Plan for Change.

Workers across the country will come one step closer to the biggest single upgrade of employment rights in a generation as the Employment Rights Bill returns to the House of Commons today.

The government will overturn amendments tabled by the Lords which would have weakened the Bill, including watering down the day one protection from unfair dismissal and limiting those able to benefit from the ban on exploitative zero hours contracts.

Fifteen million people, half of all workers, are set to benefit from the Bill, which will establish day one rights to parental and bereavement leave, include sick pay for up to 1.3 million of the lowest earners, and end unscrupulous fire and rehire practices.

These reforms will put an end to insecure work, unfair pay and poor working conditions, putting more money in people’s pockets and improving living standards.

Strong workers’ rights go hand in hand with a strong economy, and this landmark Bill will extend the employment protections already given by the best British companies, creating the right conditions for long-term sustainable growth.

Prime Minister Keir Starmer said:
“This Government is delivering the biggest upgrade to workers’ rights in a generation.

“Our Employment Rights Bill is good for workers, good for businesses and good for the economy.

“It’s a core part of our agenda to make people better off and will make a real difference to people’s lives.”

Business and Trade Secretary Peter Kyle said:
“We are relentlessly focused on making people feel better off and putting more money into their pockets. Giving workers more security in the workplace is good for the economy. It promotes prosperity, enabling people to be more active consumers and exercise more control over their lives.

“Businesses have been consulted every step of the way and will continue to be. We are focused on building an economy with a new social partnership - workers, businesses and government fixing the foundations and that starts with security at work.”

The Bill’s return to the Commons follows extensive engagement with business and trade unions to ensure that the legislation is firmly pro-business and pro-worker, and that businesses have the certainty they need to plan for the future. This will continue as the Bill progresses through Parliament.

What Kyle & Government Say: Assurances

No watering-down, especially of Lords amendments
The UK Government has stated that it will overturn certain amendments introduced by the House of Lords that would weaken protections such as:

day-one protection from unfair dismissal

the planned ban on exploitative zero-hours contracts or at least strict limits on them

Business Secretary Peter Kyle has explicitly said they will “overturn” those Lords amendments.
Nation.Cymru

Promises to unions & campaigners
Kyle has reportedly phoned union general secretaries to reassure them the Bill will go ahead.

Union bodies (TUC etc.) have also pressed the government to keep to its manifesto promises.

The government is framing the Bill as not just a worker protection measure but also as one that will have beneficial economic effects — more security can lead to more stable employment, more consumer confidence, etc. Kyle has used that argument.

Ministers say they “will deliver in full, no ifs, no buts”

Even with the above, there is still scepticism and areas of risk, per union / campaign group feedback.

Ministerial change raises anxiety
Angela Rayner was seen as a strong champion of the Bill; her leaving (plus Justin Madders) has made some unions nervous about whether political will remains as strong.

Pressure from business
Business groups are pushing for amendments, expressing concern about cost, complexity, adverse effects on hiring etc. There is concern that some parts may be weakened to accommodate business

Amendments already made / suggested
Some amendments proposed by the Lords (or being lobbied for) could dilute certain rights — e.g. introducing qualifying periods for unfair dismissal, turning guaranteed hours into “right to request” rather than “right to be offered”, etc.

Implementation details matter
Even if the Bill passes in strong form, how it's put into practice (regulations, enforcement, what counts as exploitative, how probation periods are handled, etc.) will shape how strong the protections actually are. Unions are watching for those details as much as the headline promises.

The Employment Rights Bill will raise labour standards and protections, which is great for workers but does mean compliance costs for employers. The impact isn’t the same everywhere. Here’s a breakdown of which sectors are most at risk from higher costs or disruption:

1. Hospitality (restaurants, pubs, hotels, catering)

Heavy reliance on zero-hours contracts and flexible scheduling.

High staff turnover, seasonal fluctuations, and slim profit margins.

Strong impact from:

Ban/restrictions on exploitative zero-hours contracts.

Day-one dismissal protections (harder to let staff go quickly).

Predictable hours obligations.

Risk: higher wage bills, reduced flexibility, possible closure of marginal operators.

2. Retail (especially supermarkets, fashion chains, logistics support)

Large numbers of part-time, temporary, and low-paid workers.

Widespread use of “short hours” contracts and variable scheduling.

Impact from:

Right to predictable hours.

Expanded union access (large retailers often resist this).

Risk: increased payroll rigidity, need for better workforce planning.

3. Social Care & Healthcare Support

Care homes, home-care providers, and some NHS contractors use insecure and low-pay contracts.

Already under financial strain with high vacancy rates.

Strong impact from:

Day-one dismissal rights.

Limits on zero-hours use (many care staff rely on flexible patterns, but employers exploit this too).

Risk: care sector could face severe financial pressure unless extra government funding offsets costs.

4. Warehousing, Logistics & Gig-Economy Platforms

Amazon-style warehouses, courier companies, food delivery apps.

Dependence on casualised or “self-employed” workers.

Impact from:

Reclassification of workers (more classed as “employees” rather than “self-employed”).

Union access rights.

Risk: significant rise in labour costs; platforms may change models (as seen with Uber in other countries).

5. Agriculture & Seasonal Work

Relies heavily on seasonal/temporary contracts, often migrant workers.

Impact from:

Stronger rights for temporary and agency workers.

Predictable hours rules.

Risk: farmers may face higher hiring/admin costs, though seasonal exemptions could soften this.

Sectors Less Affected

Finance, tech, professional services → Already offer relatively secure, well-paid employment. Extra compliance/admin but less structural change.

Manufacturing & energy → Large union presence already; most staff on permanent contracts. Will see some cost increases but less disruption than service sectors.

The sectors most at risk are those that currently rely on insecure, low-paid, flexible work models:
hospitality, retail, social care, logistics/gig economy, and agriculture.

If government doesn’t provide transition support or subsidies (especially for social care), we may see closures, higher consumer prices, or accelerated automation in these industries.