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Employment Rights Act Receives Royal Assent, Welcomed by Business and Union Leaders

December 18, 2025
in Business, Lifestyle, National, Politics, World
Reading Time: 3 mins read
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Employment Rights Act Receives Royal Assent, Welcomed by Business and Union Leaders
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The Employment Rights Act: A New Era for Workers in the UK

The recent passage of the Employment Rights Act represents a significant legislative advancement aimed at strengthening the rights of workers across the UK. With this Act, millions of employees are expected to benefit from enhanced protections, including improved sick pay, guaranteed hours, and limits on exploitative contracts such as zero-hours agreements.

Business Community Reactions

Leaders Back the Legislation

Leading figures from various sectors have hailed the Act as a progressive step toward fairer workplace conditions. Shirine Khoury-Haq, CEO of the Co-operative Group, emphasised that fair treatment correlates with better business performance, enabling companies to attract skilled workers.

Chris O’Shea, CEO of Centrica, echoed this sentiment, asserting that a stable and equitable work environment fosters business growth. He welcomed the Act for providing clarity and certainty for both employers and employees.

Employee Wellbeing at the Forefront

Brett Mendell, Managing Director of Thomas Kneale & Co Ltd, highlighted that the well-being of employees is central to their business philosophy. By offering the Real Living Wage and ensuring job security through predictable hours, his company has witnessed heightened employee satisfaction and loyalty.

Similarly, Claire Burns, People Director at Abraham Moon & Sons Ltd, noted that treating employees well is not just ethical but also strategic for business success. She mentioned that their existing policies align with the new legislation, reflecting a commitment to enhancing workplace culture.

Support from Trade Unions

A Landmark Moment for Workers

The Trade Union Congress (TUC) general secretary, Paul Nowak, described the ratification of the Employment Rights Act as a groundbreaking achievement for workers’ rights, marking the most extensive upgrades in generations. He outlined the Act’s potential to eliminate zero-hours contracts and improve sick pay provisions.

Union Leaders Praise Collaboration

Gary Smith, GMB General Secretary, called the Act a monumental leap forward for workers’ rights in half a century, attributing its success to the collective efforts of unions. Mike Clancy, General Secretary of Prospect, stated that the legislative victory exemplified effective cooperation between businesses and unions, essential for implementing the Act’s provisions.

Responses from the Wider Community

Business Associations and Organizations Comment

Craig Beaumont from the Federation of Small Businesses remarked on the importance of a balanced approach in the legislation that supports small businesses while enhancing worker protections. Ann Francke, CEO of CMI, reinforced the need for careful implementation, emphasizing the essential role of competent management in navigating the changes.

Other commentators, such as Jenny Herrera from the Good Business Charter, affirmed their support for practices that protect lower-paid workers, lauding the Act’s ban on coercive zero-hour contracts.

Advocacy for Vulnerable Workers

Leaders from various organisations focused on vulnerable populations, like young women and parents, noted the Act’s potential to improve job security and working conditions. Simon Kelleher from Working Families highlighted the significance of the Act for working parents and caregivers, advocating for comprehensive changes that reflect today’s family dynamics.

Background

Prior to the Employment Rights Act’s enactment, many workers faced instability due to precarious contracts and inadequate workplace protections. The passage of this legislation is viewed as a vital reform aimed at not only enhancing workers’ rights but also aligning UK labor laws more closely with international standards.

The Act comes at a time when there has been increasing pressure from both trade unions and advocacy groups for better rights and protections for employees, particularly in a post-pandemic economy that has highlighted the need for robust workplace conditions.

Source: Official statements, news agencies, and public reports.

https://www.gov.uk/government/news/businesses-unions-and-civil-society-leaders-welcome-royal-assent-of-employment-rights-act

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