Britain’s biggest trade unions have warned Labour not to water down its Employment Rights Bill following a cabinet reshuffle that removed some of the legislation’s strongest supporters from government.
The bill, expected to become law in the coming weeks, represents one of the most significant shake-ups of workplace rights in decades. It includes new protections against unfair dismissal, the outlawing of “exploitative” zero-hours contracts, and wider reforms intended to rebalance power in favour of employees.
But trade union leaders fear that the loss of Angela Rayner as deputy prime minister and the departure of employment minister Justin Madders could weaken Labour’s commitment. Senior union figures voiced concern at the Trades Union Congress (TUC) in Brighton, warning that the government may bow to business pressure and “slow walk” implementation.
Christina McAnea, general secretary of Unison, which represents more than a million workers, said the reshuffle was a troubling signal.
“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.
McAnea described the legislation as a “once-in-a-lifetime opportunity” to tilt the balance “slightly in favour of working people” and 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.”
Paul Nowak, general secretary of the TUC, echoed those concerns but said he remained confident Labour would deliver.
“This bill will give a massive boost to rights for millions of working people in insecure, low-paid employment,” he told Business Matters. “My message to the government is simple: stay on course, deliver the Employment Rights Bill, and deliver it in full.”
He also rejected suggestions that ministers might soften measures to placate business groups. “Having people in well-paid, secure employment is good for everybody. It’s good for workers, good for responsible employers who are undercut by cowboys, and good for the UK economy.”
The USDAW union, which represents more than 300,000 supermarket, warehouse and factory workers, is particularly concerned about an amendment added by the House of Lords in July.
The amendment would change the bill from a requirement for employers to offer guaranteed hours to employees, to a weaker right for workers merely to request guaranteed hours. USDAW has warned this could strip away meaningful protections for shift workers, leaving zero-hours contracts largely intact.
While unions push for stronger protections, the Federation of Small Businesses (FSB) has argued the bill is already too onerous. Craig Beaumont, the FSB’s policy director, said: “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 suggested that Rayner’s resignation and Madders’ sacking created an opportunity for compromise. “This is a chance to fix the issues,” he said.
The Employment Rights Bill was a flagship Labour pledge during the election, designed to cement the party’s support among working people. But with the economy under strain, some MPs fear ministers could delay or dilute implementation as a gesture to business.
One senior Labour MP told the BBC: “Many colleagues fear that with the economy under strain, ministers may be tempted to drag their feet on implementation as an olive branch to business.”
For now, the message from unions is clear: any sign of retreat will spark fierce opposition. With expectations high and the reshuffle unsettling allies, Sir Keir Starmer faces a delicate balancing act between keeping businesses onside and delivering on Labour’s promise to strengthen workers’ rights.