The government’s Employment Rights Bill returned to the Commons last week, where Labour MPs overturned Conservative and Liberal Democrat amendments from the House of Lords that sought to weaken it. The legislation is now in the “ping pong” stage between the two chambers, but is expected to become law this autumn.
At its heart, the Bill strengthens job security, introduces ‘fair pay’ measures, and expands protections for workers in insecure or casual roles. Employers will be required to provide more stable shifts, offer compensation for sudden schedule changes, and improve sick and parental leave. That means millions of workers will benefit from more predictable incomes — able to plan, save, and even invest in their own skills.
By setting clearer standards on sick pay, parental leave and working hours, the Bill closes loopholes in existing law. It helps prevent a “race to the bottom” on wages and conditions, while giving trade unions stronger grounds to support members, especially those taking industrial action.
The benefits extend beyond the workplace. Evidence shows fairer treatment of staff improves productivity and reduces costly turnover. Secure workers with steady pay spend more confidently in local shops and services, boosting small businesses and stabilising cashflow.
Taken together with this year’s rise in the Living Wage, the Bill helps narrow the gap between the wealthiest and the lowest paid. It also signals to investors that the UK is serious about modern, responsible labour standards at a time when global markets increasingly expect fairness and equality from employers.
The Bill isn’t perfect — there’s a strong case for going further, particularly in easing restrictions on unions around collective bargaining and industrial action. But even in its current form, the Employment Rights Bill is a major step forward: protecting workers, raising standards, and laying foundations for a more productive, dynamic economy.
