Labor Reverses Course on Key Workers’โข Rights Pledges
LONDON – November 27, 2025 โ- The Labour government has significantly scaled back its planned workers’ rights โpackage, reversing key manifesto pledges amid concerns over economic impactโ and โขparliamentary delays. The โmove, announced today, represents a major concession too buisness groups and dissenting โvoices within the House of Lords.
The original package, intended to bolster protections for working people, included measures such as day-one sick pay and changes to zero-hours contracts. However, implementation faced monthsโ of resistance, with peers warning the legislation would stifle job creation. Concerns grewโค the entire bill would fail to be ratified before the planned introduction of initial measures in April.
A government source acknowledged โthe shift, stating โthe initial consultation โhad been “filled by people projectingโ onto โขwhat their worst fears are of it,” โbut affirmed the โgovernment was “driving โtowards” a different outcome.
Outgoing industry body chair Rupert Soames condemned the initial proposals as “incoherent,” arguing they contradicted the government’s stated goalsโ of boosting youth employment and economic growth. “The government says they recognise the drag from burdensome regulation on businessโฆ In the face of these two objectives, they have significantly increased the cost of employing people, notably the young,” Soames โtold delegates, referencing a recent report detailing increased National Insurance contributions for businesses.โ He also highlighted the forthcoming Employment Rights Bill, which he believesโข will “massively increase the regulatory burden and the risk of employment.”
TUC general secretary โPaul Nowak urged swift action to salvage remaining provisions. “The absolute priority now โคis to get these rights – like day one sick pay – on the statute book so that workingโฃ people can start โคbenefitting fromโ them from next April.”
Labour’s political opponents have consistently labelled the package the โ’Unemployment Rights Bill,’ citing fears of a negative impact on job creation. Shadow business secretary Andrew Griffithโ characterized the reversal as a “humiliating U-turn” and a “conservative victory,” while maintaining the remaining legislationโข remains “not fit for purpose.”
The decision comes amid a backdrop of increasing layoffs, with UK โขbusinesses citing both the rise of artificial intelligence and legislative uncertaintyโ as contributing โฃfactors.
