Deputy Prime Minister Angela Rayner’s flagship Employment Rights Bill hailed as a “landmark” reform could be significantly diluted amid government concerns about economic growth, according to reports.
The proposed legislation, which includes a ban on exploitative zero-hour contracts and tighter restrictions on “fire and rehire” practices, is facing pushback from ministers worried about harming business competitiveness. Business Secretary Jonathan Reynolds has privately suggested exemptions for seasonal workers, allowing some industries to continue using flexible contracts outside the scope of the bill.
In a letter to the Confederation of British Industry (CBI), Reynolds reportedly indicated that certain sectors could retain alternative contract arrangements, avoiding guaranteed hours. He also hinted that other measures such as rules on mass redundancies may be softened in later stages of policy development.
Rayner has previously defended the bill as “pro-business,” arguing that stronger worker protections would boost productivity and fairness. However, the potential retreat signals internal tensions within Labour as the government balances its pro-worker agenda with concerns from employers.
The development marks a major blow for Rayner, who has championed the reforms as a core part of Labour’s pledge to improve job security. With businesses warning of unintended consequences, the final shape of the legislation remains uncertain leaving unions and workers’ rights advocates watching closely.
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