A seat at the table: Inside the discussions on the Employment Rights Bill at Westminster

As the world of work continues to evolve, the UK stands on the brink of its biggest employment law reform in decades. 

Recently, we had the opportunity to visit Westminster, where our Compliance Manager, Chloe Dickenson, joined the All-Party Parliamentary Group (APPG) for Modernising Employment. The focus? The landmark Employment Rights Bill — a piece of legislation that could redefine the future of hiring, working, and employment standards across the UK.

Chaired by Lee Barron MP, the session didn’t revolve around whether the bill should go ahead; that’s settled. The conversation focused instead on the how: how it will be implemented, how key definitions will be set, and how the draft can be improved to ensure it delivers real, lasting change for workers and businesses alike.

The Employment Rights Bill represents the most significant reform to UK employment law in a generation. It promises to reshape the landscape of work and hiring, only if it's carefully thought through and implemented. At its core, this bill aims to foster fairness, close loopholes, exploitation and biases to create an employment market that works for everyone: employers, employees, and those currently out of work.

Good work and good jobs, we know what they should look like, but we don’t have enough policy around making sure good work works for everyone – that is what this bill is focused on changing and enhancing.

Amid rising unemployment, skills shortages within certain sectors and declining job vacancies in others, the Bill seeks to remove barriers to employment while encouraging innovation and good job creation. The overarching goal is to boost the UK’s economy to one of the strongest in the G7 (UK, USA, Canada, France, Germany, Italy and Japan) whilst making hiring the fairest, fastest and most inclusive globally.

But it must be implemented wisely, a rushed or unclear approach could backfire. Below are six key themes and insights from the discussions that stood out.

Clarity in definitions is crucial

One of the most pressing concerns raised was the urgent need for clear, consistent definitions throughout the bill. Ambiguity can lead to grey areas in interpretation, which opens the door to legal loopholes or unfair practices. What constitutes ‘reasonable’ or ‘short’ notice, for example, can mean very different things to employers and employees.

Getting this right is critical; without clarity, the reforms risk becoming meaningless in practice. Definitions must be legally robust and communicated clearly to businesses and workers alike, this is the foundation upon which trust and fairness will be built to make a successful Bill with lasting changes in sectors.

A fair and balanced system for all

The Bill seeks to strike a careful balance, as Keith Rosser (Chair of the Better Hiring Institute and Director of Reed Screening) said, creating a Bill that is fairer for workers, ‘is better for business’. Key proposals include:

• Fair play, fair job security: Scrapping the lower earnings limit for Statutory Sick Pay, fair wages, stronger protection for dismissals, etc.
• Day-one rights: For parental leave and flexible working etc.
• Strengthened protection: Against harassment and preventing it, providing a voice for unions in the workplace.
• Equality action plans: Including those addressing gender and menopause.

Importantly, zero-hour contracts (ZHCs) are here to stay. ZHCs benefit many in sectors like hospitality and retail who rely on them – from the perspective of both employers and employees. The goal is not to scrap ZHCs, but to regulate them responsibly, ensuring fair notice periods, guaranteed hours, and protection from exploitation.

The key takeaway is: balance and flexibility needs to work for both employers and employees and not benefit one or allow one to exploit it in their favour.

The role of training and workplace culture

Cathryn Moses-Stone (Head of Policy & Impact, Chartered Management Institute) delivered a compelling reminder that legislative reform alone isn't enough, she drew clear parallels between a productive innovative workforce and strong leadership with a positive working culture. For the Bill to foster real change, there needs to be a focus on better workplace practices that highlight strong leadership and training. Alarmingly, employer investment in training is at its lowest since 2011, with average training investment per employee falling  by 19%.

If we want workplaces to be productive and innovative, we need to ensure managers have the tools to lead effectively. The Bill’s rollout must be paired with guidance and support to help organisations build strong internal cultures that align with their wider goals. If we create a culture of trust and close the managerial skills gap, with clear guidance and definitions for businesses, we can work towards a much stronger UK workforce, that drives efficiency and innovation.

A clear and phased implementation strategy

There was a unified call for a robust, phased implementation plan – without it, even the best-drafted legislation will falter. This includes:

• Detailed advanced timelines for rollouts.
• Tailored support for SMEs.
• Practical guidance for compliance and best practice.

The UK economy is heavily reliant on small and medium-sized businesses. If these businesses are not supported in adopting the Bill’s measures, we risk undermining its goals from the outset. Flexibility, communication, and preparation are key.

Removing barriers, not creating new ones

As Damian Hinds MP highlighted, this bill isn’t just for those currently in work and businesses. It also needs to work for the unemployed - removing unnecessary hurdles and helping more people re-enter the job market.

With unemployment rates increasing to 4.4% throughout 2024, the Bill must actively encourage fair, accessible hiring processes. It’s about rebuilding the UK’s workforce, increasing participation, and doing so in a way that’s inclusive without heavy and unnecessary expensive compliance burdens.

It was clear that businesses are concerned about the cost of measures, and this is continually brought up to the committees to remind them of this fact and how the measures need to be achievable and manageable for all; including all sizes of businesses and all in the employment market. We were reminded by MPs that they are very aware of the need to consult businesses and have a 360 degree view on definitions, measures and specifics in the reform.

Closing loopholes, avoiding unintended consequences and the Fair Work Agency

Finally, a strong warning was echoed: poorly planned legislation can drive unscrupulous practices. Without due diligence, intermediaries could restructure or relocate to evade regulation. In some cases, loopholes are causing the legitimate marketplace to not be used which is feeding into the rising unemployment rates.

The proposed licensing scheme for umbrella companies is a step in the right direction, but it needs to be watertight. Regulators must stay ahead of evolving models, and oversight must be strong enough to prevent questionable organisations from undermining the Bill’s intent.

The Fair Work Agency will have this at their forefront, bringing together existing enforcement powers that bodies hold already whilst adding new additions to enhance worker rights and protections - employees are at their focus. It was highlighted how the Agency needs visible leadership and a clear strategy to engage with businesses whilst not being stretched too thin. However, it must also be given clear responsibilities and measurements on how enforcement can be acted upon. The aim is to end fragmented oversight and enhance a proactive approach to the enforcement of measures.

Looking ahead: A long game worth playing

At its heart, the Employment Rights Bill is about building a better, fairer employment landscape. One rooted in flexibility, inclusion, and good business practices. The goal isn’t to overregulate or create friction; it's to streamline, simplify, and support both sides of the employment equation in a modern, post-pandemic world.

If done right, the Bill could place the UK at the forefront of fair and progressive employment practices among the G7. However, full implementation will take time. While some changes may emerge soon, most are not expected until 2026 or later. This is a long-term vision, and it requires ongoing dialogue, careful scrutiny, and broad consultation to succeed.

The Government’s role now is clear: provide clarity, foster transparency, and engage deeply with all stakeholders. From definitions to implementation, every step must be considered, inclusive, and above all else, fair.

Good work and good jobs equal good business, which will grow the UK’s economy and make UK hiring one of the fastest, fairest and inclusive globally.