Unite’s general secretary, Sharon Graham, has issued a warning to the government, saying it should enact full reforms of workers’ rights in order to fulfil a “promise to the British people”.
The trade union leader said that the pledges to enhance the rights of employees were a central part of Labour’s election platform and that unions would not allow the employment rights bill to be weakened.
“What I do hope is that they don’t intend on now slowing this down, or indeed scrapping some parts of it altogether,” she told the BBC. “You don’t have to be a bad employer to be prosperous. And so therefore, for me, trade unions are the equaliser.
She added: “I don’t accept that trade unions and putting up wages is bad for the economy. It’s good for the economy.”
Downing Street and Labour sources said the legislation would proceed despite pressure from businesses to water down some of the protections against unfair dismissal.
The bill includes a bar on exploitative zero-hours contracts, which would only be permitted on the request of an employee, ending most instances of fire and rehire, and day one protection from unfair dismissal – though probation periods will be allowed – as well as protecting workers from harassment.
Graham has already criticised alterations to the bill during its passage through the Commons, where changes included allowing some instances of fire and rehire when a business would otherwise collapse.
One senior government source said the bill would continue as planned: “This reshuffle is about boosting growth, productivity and making people better off. Higher pay and stronger rights for working people is a key part of the government’s programme.”
Peter Kyle, the new business secretary, phoned union general secretaries over the weekend to reassure them that the bill would go ahead.
Paul Nowak, the TUC general secretary, who had sought assurances from ministers after Angela Rayner’s departure from cabinet, urged the prime minister to commit to implementing the legislation “in full”.
In his speech at the TUC conference on Monday, Nowak will say: “Deliver the manifesto on which you won a huge majority last July. Deliver good jobs, decent public services and better living standards in every corner of the country. Deliver the change people voted for. And show working-class communities whose side you are on.”
The bill has been the subject of intensive lobbying from business groups and criticism in the national media, and linked to low growth forecasts. Critics have suggested the increased protection for workers is an additional burden for businesses who have also seen national insurance for employees increase.
The Conservative leader, Kemi Badenoch, said it was an opportunity to drop a bill that the Tories had opposed. “Angela Rayner’s job-destroying bill is hated by every credible business figure in the country and will cost firms over £5bn according to the government’s own analysis,” she said.
“With his deputy gone, Starmer must now focus on the dire economic situation. If he’s serious about delivering economic growth, his latest reset must start with the end of this disastrous bill. It’s the one request from every business I’ve spoken to, especially small business owners.”
Polling has found Labour’s employment rights bill could substantially increase the party’s plunging popularity with Reform and former Conservative voters, though there is little public knowledge of the changes.
Among the most popular policies is one on workers’ prevention from harassment, which has a high favourability rating – despite significant criticism from Nigel Farage, Reform UK politicians and the Conservatives, who have sought to portray it as a “banter ban”.
