Labour’s Employment Rights Bill has become the focus of a renewed lobbying battle following the resignation of Deputy Prime Minister Angela Rayner. Trade unions expressed concern that Rayner’s exit, along with the sacking of employment rights minister Justin Madders, could lead to the watering down of key worker protections. At the TUC conference in Liverpool, union leaders warned the government not to abandon promises to outlaw exploitative fire and rehire practices and to guarantee employment rights from the first day of a job. Several unions accused Labour of backtracking already, citing exemptions in the fire and rehire measures tabled in the House of Lords. Business groups are now stepping up their lobbying efforts. The Federation of Small Businesses and others are urging Labour to accept Lords amendments introducing a six-month qualifying period before new employees can bring unfair dismissal claims. They argue that the original day-one rights plan imposes costs and uncertainty on small employers. The government has so far insisted that the bill will remain intact. Incoming employment rights minister Kate Dearden, formerly of the Community union, has said the legislation will go ahead as planned. But some unions say her appointment is not enough to offset the removal of Rayner and Madders from key roles. Among union leaders there is concern that internal reshuffles signal a shift in Labour’s approach. Unite’s general secretary has said the government appears to be backpedalling under pressure from corporate interests. The GMB and Unison have both called for Starmer to restate his personal commitment to delivering the full package of workers’ rights. In the House of Lords, peers passed several amendments to the bill in late July, including measures allowing certain fire and rehire tactics in cases of severe financial stress. The most contentious change remains the six-month qualifying period. Labour sources have said the government will seek to overturn that amendment in the Commons.

Some MPs have privately warned that any softening of the bill could alienate Labour’s core voters and leave the party vulnerable to attacks from both the left and right. Pressure is also mounting from backbenchers who see the employment rights package as central to Labour’s legislative agenda in its first year.

The government continues to present the bill as the most significant upgrade to workers’ protections in decades. Key proposals include banning zero-hours contracts without guaranteed hours, expanding sick pay eligibility, and strengthening trade union access. The final wording will depend on how Labour responds to the Lords’ amendments in coming weeks....