The Employment Rights Bill: a matter of reputation
As hundreds of delegates descend on Brighton this week to attend the 157th TUC Congress (7-10 September), employment rights are firmly back in the spotlight.
Unsurprisingly, something that is on the agenda for debate is The Employment Rights Bill, which is currently making its way through Parliament. If passed, it would be the most significant upgrade in workplace rights for a generation.
So far, much of the business lobby has dominated coverage with warnings that the Bill will bring “reckless changes” and “wreak havoc” on a fragile economy.[1] Those soundbites may be memorable, but they risk painting all employers with the same brush – resistant to change and reluctant to offer fairer conditions to employees.
Unions and legal experts have pushed back with a different message: that the Bill does not go far enough and needs to be strengthened. The think-tank, the Institute of Employment Rights (IER), warns that, in its present form, the Employment Rights Bill leaves workers vulnerable to the very practices it aims to prevent.
As IER director, James Harrison, puts it: “The Employment Rights Bill unfortunately doesn’t appear to deliver on the significant promises originally made by the Labour Party’s Plan to Make Work Pay. Unless the legislation is tightened or significantly built upon, it’s future generations of workers who will pay the price.”
One area that the IER believes the Employment Rights Bill needs tightening is around the issue of ‘fire and rehire’. It argues that the proposed ban of this practice still allows employers to dismiss staff under vague clauses such as “likely financial difficulties”, without any requirement for independent verification of those claims.
Similarly, they argue, proposed measures on zero-hours contracts leave loopholes that could allow insecure work to continue through bogus self-employment and short-term contracts.
The IER believes that, without substantial improvements, the UK risks remaining an international outlier on workers’ rights and falling short of its obligations under International Labour Organization (ILO) and Council of Europe standards.
Rather than stifling growth, some economists have argued that stronger rights can support it, boosting productivity, stability and consumer demand.
Professor Ozlem Onaran, Professor of Economics at the University of Greenwich, said: “The idea that weaker worker protections are necessary for growth is fundamentally flawed. This does not create a sustainable economic model—it simply increases inequality and instability.”
Their evidence is solid, but it risks being drowned out in a debate shaped by sharper, more emotive language from influential business groups.
Behind the headlines, this is not only a policy debate but also a reputational battle – one that will shape how employers are perceived by staff, customers and communities long after the law is passed.
Those companies that use this moment to show they value staff will strengthen loyalty and attract talent which, in turn, will help the bottom line. More enlightened employers will realise that stronger protections are not a threat, but rather a chance to level the playing field against less responsible, more unscrupulous competitors.
The Employment Rights Bill may reshape the law. But how warmly it is embraced and applied will depend on individual employers. This means businesses thinking carefully about the values they want to be known for.
For, at the end of the day, how organisations treat their employees and walk the talk around rights and fairness is not simply a response to legislation – it is part of their brand.
This article was written by our HR & Operations Director, Sarah Whittle, and featured in the Western Mail on 8 September 2025.
[1] https://www.fsb.org.uk/media-centre/press-release/employment-bill-will-wreak-havoc-on-our-already-fragile-economy-say-small-firms-MCPC3QTBJZ3NF55GDIT373VN2XVI