Keir Starmer has delayed “day one” workers’ rights until 2027 amid business concerns.
Under a new timeline for the government’s Employment Rights Bill, measures which will protect Brits against unfair dismissal, guarantee flexible working rights, and ban “exploitative” zero-hours contracts have been delayed.
The Labour plans were originally due to take effect in 2026; however, the government has now set out a roadmap to provide businesses with the “clarity and certainty they need to plan, invest and grow.”
They will also be subject to further consultation and it is still unclear how they will be implemented as firms argue it will bring a “wave of disruptive changes”.
Business secretary Jonathan Reynolds said the government had engaged with businesses of all sizes from the outset “to ensure this bill works for them.”
He said: “Since the beginning, we have been working with businesses big and small to ensure this Bill works for them, and this roadmap will now give them the clarity and certainty they need to plan, invest and grow.
“By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive,” he said.
However, TUC general secretary Paul Nowak said the changes were “long overdue”.
He said: “It’s welcome that workers will start to benefit from these long overdue changes from later this year – but this timetable must be a backstop. We need to see these new rights in action as soon as possible.
“Decent employers don’t need to wait for the law to change. They should be working with staff and unions right now to introduce these changes as quickly as possible. It’s time to level up Britain’s workplaces and end the scourge of insecure work.”
The Employment Rights Bill remains under scrutiny in the House of Lords and is not expected to receive Royal Assent until the autumn.