Industry Calls for Practical Implementation of Employment Rights Bill
Labour providers and employers across the UK labour supply chain are urging the government to engage more closely with the sector to ensure that the Employment Rights Bill works in practice as well as in principle.
The message comes from the latest UK Labour Supply Chain Survey, carried out by the ALP in May 2025, with input from 109 labour providers and 55 employers supplying the UK food and industrial sectors.
The survey findings reflect broad support for responsible reform, but a strong call to ensure that any new rights are realistic, proportionate, and reflect the complex, fast-moving nature of temporary labour provision.
“There needs to be much more involvement and engagement with businesses within various labour sectors to more clearly understand and appreciate the complexity of the various markets – and adapt the Bill to be fit for purpose.”
Respondents expressed concern that proposals around guaranteed hours, shift notice periods, and day-one rights risk undermining flexibility and pushing up costs.
“It totally changes what an agency worker is and we could lose the flexibility and cost effectiveness that the industry provides.”
“Guaranteed hours cannot be applied in certain industries – e.g. industrial, warehouse & logistics and retail – where demand is not controlled by client but rather by the supply chain.”
Respondents also warned that the changes could affect the viability of ethical labour providers if not implemented carefully.
“As it currently stands, it will provide glorious opportunity for the unscrupulous and will make compliant agencies unaffordable.”
“We work so hard to manage peaks and troughs in businesses by offering a flexible solution, yet margins are constantly being reduced – and we still face a number of rogue providers. It’s made tough when you do things honestly!”
Employers Emphasise Practical Challenges
Employers responding to the survey echoed similar concerns about cost, compliance risks and administrative burden.
“The Employment Rights Bill does not support employers in the slightest. It tarnishes all employers with the same brush that we are all bad employers. This is not the case and those of us that are good employers are being punished.”
“This is pushing HR departments to move back to spending all their time working with disengaged employees or those who are intent on taking advantage of the system. HR has an opportunity to add real value to a business and this type of work does not add value.”
Employers also questioned whether the new measures would achieve their intended goals:
“Protection of workers’ interests will always be priority, but I’m not fully convinced the Employment Rights Bill (as a whole) is practically suited in [an] era where temporary recruitment needs are changing so rapidly and costs are rising.”
A Sector Willing to Engage
Despite concerns, labour providers made clear they support the Bill’s goals and want to work constructively with government to ensure reforms deliver positive outcomes.
“The ERB really needs to be adapted to work in our industry and at the moment it is doing the opposite of trying to grow the economy – it will stifle it if sensible decisions are not made.”
“Still waiting on a lot of the practical applications and how it will impact agencies – very hard to say until we know more.”
“It’s about time Recruitment Agencies were seen as the beneficial service that we offer for both Client and Employee!”
The ALP is using the survey findings to inform ongoing engagement with policymakers and to advocate for a phased, sector-sensitive approach to implementation.