The UK government’s flagship Employment Rights Bill could create barriers to growth and worsen conditions in the labour market if not amended, according to the Association of Professional Staffing Companies (APSCo UK).
The trade body, which represents the professional recruitment sector, criticised the rejection of proposed amendments to the legislation, describing the move as “disappointing” and a sign that business leaders and staffing experts are being ignored.
“The Employment Rights Bill is, without doubt, one of the most significant and large-scale changes to employment legislation that today’s recruitment leaders and businesses have seen,” said Samantha Hurley, Managing Director of APSCo UK. “It will shake up hiring as we know it, but not all of the changes are relevant and necessary.”
Hurley warned that the current form of the Bill risks imposing financial and operational burdens on employers at a time when vacancies are already falling. While she acknowledged the need for reform to reflect modern work practices, she argued that the legislation lacks a tailored approach. “Different workers need nuanced safeguards and some need far more freedom and flexibility. Protection in employment should go both ways – for the individual and those hiring them,” she said.
The Employment Rights Bill, described by ministers as the most sweeping overhaul of workplace law in decades, is progressing through Parliament. It includes measures such as protections against unfair dismissal, a ban on exploitative zero-hours contracts, and enhanced rights to flexible working.
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Business groups, however, have voiced concerns that the reforms could unintentionally stifle hiring. Both the Institute of Directors (IoD) and the Confederation of British Industry (CBI) have warned that the combination of stricter employment rules, rising National Insurance Contributions, and above-inflation minimum wage increases has created a “perfect storm” for employers already cautious about expansion.
APSCo said the government’s unwillingness to adopt amendments put forward by the sector risks undermining its own policy goals. “The current format of the Bill risks creating barriers for employers both financially and in terms of access to critical talent,” Hurley said. “Businesses and recruiters are set to be hindered by the plans, which will only inadvertently impact the labour market as available jobs continue to dwindle further.”
The group urged ministers to engage more closely with staffing professionals to ensure reforms strike a balance between worker protections and business flexibility. While compromise was expected during the final drafting of the Bill, Hurley cautioned that sidelining expert advice could undermine the government’s ambition of delivering a stronger, fairer labour market.
APSCo said it would continue lobbying for changes to ensure that reforms benefit both employees and employers, warning that without adjustments the Bill could deepen challenges in an already cooling UK jobs market.
