Conservative lawmakers are urging the government to repeal or pause the implementation of the Employment Rights Act, passed in December, citing concerns that its upcoming provisions will harm businesses and potentially lead to widespread industrial action. The opposition contends that the reforms, championed by former Housing Secretary Angela Rayner, could send Britain back to the economic conditions of the 1970s.
Key provisions set to be implemented in the coming months include 'swipe to strike' proposals, which would allow for online balloting for industrial action. Critics argue this change, scheduled for August 31, coupled with relaxed balloting requirements, could trigger a wave of disruptive walkouts. Additionally, the time limit for most employment tribunal claims will double from three months to six months starting October 1. Businesses also face new workplace obligations.
Conservative business spokesman Andrew Griffith stated that the proposed regulations represent an attempt to return to the 1970s and could exacerbate the crisis of young people struggling to find employment. He called for the government to repeal the act, which he described as "job-killing measures," and suggested further action to limit union power.
Kemi Badenoch, Conservative leader, echoed these sentiments, calling the Employment Rights Act a "total disaster for business and for jobs." She attributed the graduate recruitment crisis and rising unemployment partly to this legislation. "If Andy Burnham wants to show he's serious about spreading growth around Britain, he'd stop the remaining parts of the Act coming into force," Badenoch said.
Further regulations slated for implementation next year include a crackdown on zero-hours contracts, requiring compensation for short-notice cancellations, and granting unions the right to access workplaces with 21 or more employees weekly to recruit members and hold meetings. A "banter ban," intended to prevent offensive comments towards staff, is set to be enacted from October 30.
Concerns about the act's impact on employers were also raised by former Labour Cabinet minister Alan Milburn, who noted in a report that the reforms, while aiming to strengthen worker protection, were perceived by some employers as increasing management burdens and reducing flexibility.
These warnings coincide with recent figures indicating a decline in new business creation. The Office for National Statistics reported that 157,980 new businesses were established in the first six months of 2026, a 3% decrease compared to the same period last year, nearing the decade's lowest figure set in 2023. An Institute of Directors poll also indicated subdued business confidence.
A government spokesperson stated that consultations with businesses and unions are ongoing to ensure the Employment Rights Act is implemented fairly and effectively, protecting workers while being manageable for employers.