What next for the Employment Rights Bill?

On Thursday 27th March, the APPG on the Future of Work hosted a timely and engaging event on the Employment Rights Bill, coinciding with the Bill’s ongoing debate in Parliament. The session brought together expert panellists representing trade unions, employers, and policy organisations to discuss the Bill’s strengths, gaps, and the broader implications for the UK labour market. The discussion also explored emerging challenges, including the impact of AI, workplace surveillance, and the future of trade union access rights.

Chaired by Lord Jim Knight, the panel was joined by:

Simon Deakin (University of Cambridge)

Dominic Armstrong (Community Union)

Kieren Walters (Prospect)

Dan Ornstein (Simmons and Simmons LLP)

Cathryn Moses-Stone (Chartered Management Institute)

Key Takeaways

Strengthening Workers’ Rights and Labour Market Enforcement

1. Simon Deakin (University of Cambridge) highlighted how Universal Credit (UC) effectively subsidises low-paying employers, underscoring the need for stronger enforcement mechanisms to ensure fair pay and working conditions.

2. The Bill was commended for introducing day-one employment rights, but concerns were raised about gaps in enforcement capacity and the exclusion of employment status reforms (which are being considered separately in the Making Work Pay consultation).

3. Comparisons were drawn to the EU Platform Worker Directive, which offers enhanced protections for gig economy workers – a model some participants felt the UK should consider replicating.

Trade Unions and Social Partnerships

1. Several panellists emphasised the importance of social partnerships—collaboration between government, businesses, and trade unions—as a mechanism for delivering better protections and workplace standards.

2. One panellist noted the breakdown in government-union relations over recent years and called for stronger, more empowered unions as the bedrock of workers’ rights.

3. Concerns were raised about the employment tribunal system, described as overstretched and under-resourced, with waiting times exceeding 18 months. Participants stressed the need for more proactive enforcement mechanisms to reduce the reliance on costly and delayed legal recourse.

Employer Perspectives and Workforce Challenges

One panellist highlighted the private sector’s concerns around the Bill’s impact on productivity. While large employers broadly support measures to prevent exploitation, they raised issues around:

• Day-one unfair dismissal rights, which some employers view as problematic, preferring the use of probationary periods.

• The push for four-day working weeks, which they argue could undermine competitiveness.

• The growing challenges of supporting employees with mental health conditions, with employers seeking clearer guidance on legal obligations and best practices.

Some employers advocated for targeted flexibility in working arrangements rather than broad, sweeping reforms, citing concerns over the impact of remote work on productivity and morale.

Addressing Emerging Challenges: AI, Surveillance, and Workforce Regulation

1. The discussion highlighted the growing role of AI and surveillance in the workplace, with calls for the Bill to be flexible enough to accommodate future technological changes.

2. Community shared insights from their collaboration with Google on using AI to empower, rather than exploit, workers.

3. Panellists stressed that while the Bill could not address every future challenge, it should provide the foundation for ongoing regulatory adaptability.

4. Concerns were raised about secondary legislation, particularly around trade union access rights and unfair dismissal protections during probation periods, which are expected to be shaped by forthcoming consultations.

Key policy takeaways:

Enhancing Enforcement Mechanisms

• Clearer powers for Fair Work Agencies were proposed, reducing the reliance on the employment tribunal system.

• Declarations of compliance were cited as an effective enforcement tool to ensure business accountability.

• There were calls for secondary legislation to outline stronger protections against fire-and-rehire practices and extend unfair dismissal protections to agency and self-employed workers.

Supporting Trade Unions and Modernising Labour Relations

Panellists advocated for reforms to trade union access rights, including:

• The removal of bureaucracy around political funds to strengthen union campaigning capabilities.

• The introduction of e-balloting and electronic communication, making it easier for unions to engage with workers.

• Strengthening social partnerships was identified as a key enabler of fair work practices, with Wales’ transformative public procurement policies cited as a successful model.

Employer Engagement and Workforce Guidance

• Employers called for clearer guidance on flexible working requests, mental health support, and changes to the employment tribunal process.

• Concerns were raised about the compatibility of the school day with working hours, highlighting the need for broader policy reforms to support working parents.

Long-term Labour Market Reforms

The Making Work Pay consultation was seen as a critical next step, with panellists calling for:

• Maternity and paternity leave reviews

• The introduction of a right to disconnect

• Stronger protections against algorithmic surveillance

Participants stressed the importance of aligning with European labour market standards to maintain competitiveness and protect workers.

The event provided a comprehensive exploration of the Employment Rights Bill, highlighting its strengths while identifying key areas for improvement. The discussion underscored the importance of robust enforcement, social partnerships, and regulatory flexibility to future-proof the Bill against emerging challenges. The APPG on the Future of Work will continue to engage with policymakers, trade unions, and employers to shape the future of employment rights in the UK.