Paul Nowak, general secretary of the Trades Union Congress (TUC), has defended the government’s proposed Employment Rights Bill, dismissing warnings from business leaders that it would place undue pressure on employers already dealing with tax hikes and rising wage costs.
Speaking to The Times, Nowak argued that the bill was long overdue and aimed at ending exploitative workplace practices. “This is about weaning a layer of employers off low-paid, insecure employment,” he said. “We need to ask ourselves if it’s sustainable to carry on with the current situation, where people are trapped in low-paid, precarious work. If we don’t, then we’ve got to bite the bullet at some stage.”
The legislation, which is currently progressing through Parliament and will soon enter the committee stage in the House of Lords, is facing stiff opposition from Britain’s five main business lobby groups. In an open letter to ministers, the CBI, Make UK, the Institute of Directors, the Federation of Small Businesses and the British Chambers of Commerce warned the bill could have “deeply damaging implications” for growth.
Among the bill’s proposals are day one rights against unfair dismissal, expanded sick pay, greater protections around shift patterns, enhanced powers for trade unions, and the near-total abolition of controversial fire-and-rehire tactics. Critics argue that these measures could increase employment costs by around £5 billion, according to the government’s own impact assessment.
Nowak rejected those concerns, pointing to similar fears raised when the minimum wage was introduced in the 1990s. “Critics of pro-worker legislation are proven wrong time and time again,” he said.
The business community is already grappling with significant financial pressures. April saw a £25 billion rise in employers’ national insurance contributions and a 6.7 per cent increase in the minimum wage. With President Trump’s new global tariffs fuelling concerns of an economic downturn, some employers fear further burdens could curtail hiring and slow growth.
There is speculation that the government may revise the bill’s most contentious element — day one unfair dismissal rights — by tying them to the end of a 90-day probationary period. Ministers have yet to confirm whether such a compromise will be adopted.
Despite these challenges, the government believes the bill could help reverse the UK’s poor track record on wage growth, with ministers hoping stronger protections will lead to greater job security and productivity.
Nowak also took aim at Donald Trump’s protectionist trade stance, calling him “an unreliable partner”. Nevertheless, he urged ministers to continue pursuing a UK-US trade deal while also resetting economic ties with the European Union in light of shifting global alliances.
He also praised the government’s emergency intervention to save British Steel from collapse after Chinese owner Jingye threatened to shut its Scunthorpe operations. “People in Scunthorpe will see the difference the government has made there. That plant would have closed otherwise,” he said.
