Source · Select Committees · Business and Trade Committee
3rd Report - Make Work Pay: Employment Rights Bill
Business and Trade Committee
HC 370
Published 3 March 2025
Recommendations
1
Accepted
Define reference periods for the right to guaranteed hours in regulations.
Recommendation
Without a reference period defined in primary legislation, there is a lack of certainty among workers, trade unions and businesses as to how the right to guaranteed hours will work in practice. To ensure certainty, the Government should define as …
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Government Response Summary
The government has announced that the initial reference period for the right to guaranteed hours will be 12 weeks and intends to consult on the length of subsequent reference periods before making secondary legislation to provide clarity.
Department for Business and Trade
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2
Accepted in Part
Embed definitions of 'reasonable notice' and 'moved' shifts into primary legislation.
Recommendation
While the Committee welcomes the added security for workers that the Bill brings with measures to provide reasonable notice of shifts and compensation for cancelled, moved or curtailed shifts. But the lack of key details on the face of the …
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Government Response Summary
The government declines to put all requested definitions into primary legislation, stating they are more suited to secondary legislation for flexibility, but confirms the Bill states the short notice period will not exceed seven days and will consult on regulations for other definitions and worker groups.
Department for Business and Trade
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4
Accepted
Use delegated powers to enhance protections for agency workers through zero-hours contract reform.
Recommendation
The Committee therefore urges the Government to use the delegated powers provided by the Bill to reform zero-hours contracts to enhance protections for agency workers as soon as possible. These reforms 36 should not be at the expense of the …
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Government Response Summary
The government agrees to extend contract certainty to agency workers to prevent them from becoming a loophole in zero-hours contract reforms, having already brought forward amendments to the Employment Rights Bill and committing to consult on further detailed regulations.
Department for Business and Trade
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5
Rejected
Remove the 'minimum number of hours' reference from the Employment Rights Bill.
Recommendation
Defining what counts as low-hours creates a loophole that can be exploited by companies to avoid their obligations set out in the Bill. We echo Usdaw’s recommendation that the reference to ‘a minimum number of hours, not exceeding a specified …
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Government Response Summary
The government rejects the recommendation to remove the hours threshold, stating it is important to prevent unnecessary interference with existing arrangements and ensure the right is targeted. They will consult on the specific hours threshold for regulations.
Department for Business and Trade
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6
Deferred
Prioritise review of worker status and address false self-employment immediately.
Recommendation
While the Committee welcomes the Government’s plans to reform worker status and bogus self-employment, it must proceed at pace to turn ambition into action. If it does not, it risks more companies adopting a ‘self-employment’ model for their workforces to …
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Government Response Summary
The government acknowledges the complexity of the employment status framework and the issue of bogus self-employment but states that consulting on and implementing reforms to create a simpler framework is a longer-term goal that will take time, rather than prioritising it immediately alongside the Employment Rights Bill.
Department for Business and Trade
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7
Accepted
Publish plans to regulate the umbrella company market and tackle non-compliance.
Recommendation
While compliant umbrella companies can have many benefits to workers, there have been longstanding concerns across governments that the lack of regulation in the umbrella company market can lead to exploitative working practices. The evidence is overwhelming of the need …
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Government Response Summary
The government agrees timely action is needed to regulate umbrella companies, has set out plans in response to a 2023 consultation, introduced an amendment to the Employment Rights Bill, and committed to consult on a bespoke regulatory framework.
Department for Business and Trade
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8
Rejected
Revisit equality law enforcement regime, clarifying Fair Work Agency and EHRC roles to protect workers.
Recommendation
To ensure long-term enforcement of the new duties on employers introduced in the Employment Rights Bill, the Government should revisit the regime for enforcing equality law and harm against individual protected characteristics, including setting out how the Fair Work Agency …
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Government Response Summary
The government states the EHRC will retain its current responsibility for enforcing equality law and the FWA's remit does not include equality legislation, therefore rejecting a broader review of the equality law enforcement regime, though it will consider how information sharing between bodies works in practice.
Department for Business and Trade
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9
Acknowledged
Task Acas with leading an information campaign to promote good employment practice compliance.
Recommendation
We recognise that there are a significant number of new employment rights that employers will need to understand and implement. We therefore call on the Government to consider how they use networks of employment support, both statutory and voluntary, to …
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Government Response Summary
The government states it will consult on implementation details and ensure sufficient support, recognizing Acas as a valuable partner with whom it is already working closely, but does not explicitly commit to tasking Acas with leading an information campaign.
Department for Business and Trade
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10
Acknowledged
Develop a clear, long-term industrial relations strategy, credibly resourced and embedded through collaboration.
Recommendation
The Government’s framework for industrial relations provides strong principles that can help to shape a future settlement based on productive engagement between trade unions and employers. To develop this ambition, we recommend that the Government develops a clear and long- …
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Government Response Summary
The government committed to exploring the development of an overarching industrial relations framework that will set out its vision and provide guidance, engaging with stakeholders in its formation, but does not commit to a specific long-term strategy with resourcing details.
Department for Business and Trade
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11
Accepted
Expand the Bill's definition of 'Access' to explicitly include a union's right to digital access.
Recommendation
More should be done to ensure that the new right of union access proposed in the Bill is protected against future changes to ways of working and the risk of non-compliance. We recommend that the Bill’s proposed definition of ‘Access’ …
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Government Response Summary
The government accepted the recommendation and has already amended the Employment Rights Bill to expand access rights to include digital access, also legislating against refusing physical access solely due to digital access, with further details to be outlined in secondary legislation after consultation.
Department for Business and Trade
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12
Accepted in Part
Amend Trade Union Act sections to improve recognition ballot complaint and limitation periods.
Recommendation
Given that an expected consequence of the Employment Right Bill may be greater recognition ballot activity within workplaces, it is essential that ministers amend section 27B of Schedule 1A of the Trade Union and Labour Relations (Consolidation) Act 1992 to …
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Government Response Summary
The government is extending the time period for complaints related to an unfair practice during recognition ballots from one to five working days and will consult on a revised Code of Practice. However, it does not explicitly commit to shortening the limitation period for bargaining unit applications or to developing specific access agreement templates and better resourcing for businesses.
Department for Business and Trade
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13
Accepted in Part
Require transparency for recognition ballot spending and secure a long-term WERS replacement.
Recommendation
It is important that the impact of reform to industrial relations is both measurable and measured. We recommend that the Government bring transparency around industrial disputes in line with best practice elsewhere, including the United States, and requires parties involved …
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Government Response Summary
The government is extending the time for complaints related to unfair practices during recognition ballots and will consult on a revised Code of Practice. It states it is wary of placing additional burdens for disclosure on parties but will work to ensure appropriate data monitoring, and is considering options for a WERS replacement, including monitoring the feasibility of a linked employer-employee database.
Department for Business and Trade
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15
Deferred
Review Modern Slavery Act Section 54, mandating reporting and introducing penalties for non-disclosure.
Recommendation
The Government must review the Modern Slavery Act 2015 and make changes to Section 54 to improve transparency. In particular the Government should: a. Change provision 54(5) such that the areas of reporting in modern slavery statements become mandatory. b. …
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Government Response Summary
The government is considering strengthening Section 54 of the Modern Slavery Act, including reporting requirements and penalties, and will set out next steps in due course, noting that significant reform will take time. Interim updated guidance has been published.
Department for Business and Trade
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17
Deferred
Align UK legislation with global partners, introducing mandatory human rights due diligence and import bans.
Recommendation
The UK Government must look to align with global legislation, prioritising the introduction of mandatory Human Rights due diligence, to avoid duplicated efforts for UK businesses. The Government should also consider newer levers such as import bans on products from …
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Government Response Summary
The government affirms its support for voluntary human rights due diligence approaches and states it will continue to assess and monitor existing measures and new international policy tools, consulting with stakeholders as it considers any further action on mandatory due diligence or import bans.
Department for Business and Trade
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19
Rejected
Set out Fair Work Agency funding target to meet ILO inspector benchmark
Recommendation
The Committee welcomes the Government’s focus on labour market enforcement to tackle non-compliance. However, if the Fair Work Agency (FWA) is to be given new powers it will also need more resource. Efficiencies made from combining current budgets will not …
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Government Response Summary
The government states that while inspector numbers are important, the focus is on effective enforcement and efficient resource use, and it does not commit to the ILO benchmark or to setting out a specific funding target, strategy, or timeline for the Fair Work Agency, promising only to consider resources when producing future reports.
Department for Business and Trade
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21
Accepted
Ensure Fair Work Agency has powers and resources to investigate labour exploitation
Recommendation
The Government must ensure that the Fair Work Agency has the necessary powers to deter non-compliance. It must have the authority to investigate all forms of labour exploitation, up to and including modern slavery, and be adequately resourced to fulfil …
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Government Response Summary
The government states the Fair Work Agency will inherit and expand upon existing powers, including the ability to issue special warnings and enforce certain Fraud Act offences, thus strengthening its capacity to investigate a wider range of serious labour exploitation cases.
Department for Business and Trade
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Conclusions (5)
3
Conclusion
Accepted
While the Committee understands that certain workers like the flexibility that comes with agency work and that it can be used as a legitimate short- term employment tool for many businesses, we are concerned about the impact long-term agency work could have on people’s security at work. We have heard …
Government Response Summary
The government agrees that agency workers should have certainty of hours and has brought forward amendments to the Employment Rights Bill to expand provisions for zero-hour measures to agency workers, with further regulations to be developed after consultation.
14
Conclusion
Deferred
Case studies reviewed by the Committee highlight a significant inconsistency in the transparency of Modern Slavery Statements. Although these statements may meet the requirements of the Modern Slavery Act 2015, the lack of standardisation hinders consumers from making informed purchasing decisions and assessing whether products are free from exploitative labour …
Government Response Summary
The government acknowledges the inconsistency in Modern Slavery Statements and states it is considering how to strengthen the Section 54 regime, including reporting requirements, and will set out next steps in due course. It also notes updated statutory guidance has been published.
16
Conclusion
Acknowledged
The UK is at serious risk of becoming a ‘dumping ground’ for products made with forced labour if it does not keep up with our global partners on legislative reforms to tackle modern slavery. (Conclusion, Paragraph 85)
Government Response Summary
The government acknowledges the risk and its commitment to eradicating forced labour, stating it will continue to assess and monitor existing measures and emerging policy tools, and will consult stakeholders when considering further action.
18
Conclusion
Acknowledged
Laws are only as effective as those who enforce them. If the Government wishes to ensure workers are given strengthened employment rights, and that all firms benefit from a level playing field for labour standards, effective labour market enforcement must be prioritised. (Conclusion, Paragraph 94)
Government Response Summary
The government is committed to effective labour market enforcement by balancing resources, expertise, and coordination, and will monitor the effectiveness and consider resources for the Fair Work Agency when developing its enforcement strategy and annual report.
20
Conclusion
Accepted
It is crucial that the creation of the Fair Work Agency does not result in a dilution of the powers currently held by the three existing enforcement bodies. (Conclusion, Paragraph 98)
Government Response Summary
The government asserts that the Fair Work Agency will not dilute existing powers but will inherit the full suite of investigatory powers from existing bodies and expand their reach, with the Employment Rights Bill upgrading enforcement and filling gaps in GLAA's remit.