Labour Unveils Employment Rights Bill in UK

Labour's new Employment Rights Bill aims to transform workers' rights by banning zero-hours contracts and enhancing protections, allowing employees to claim unfair dismissal from the first day of work. While the bill, which includes 28 measures, is hailed by trade unions as a significant advancement for workers, business leaders, including the Federation of Small Businesses, criticize it as 'clumsy, chaotic, and poorly planned.' They warn that these reforms could stifle investment, slow growth, and inject fear into small businesses already struggling in a post-COVID economy. Critics argue that making flexible working the default and implementing immediate protections may deter employers from hiring due to increased risks associated with new recruits. Labour claims the reforms will benefit nine million workers and stimulate economic growth, yet opposition voices suggest it may lead to increased economic inactivity and a decline in job creation. The rollout of these changes is anticipated to be gradual, with full implementation not expected before autumn 2026.