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Friday, July 11, 2025

Close loopholes that let rogue firms undercut best employers, say MPs - Personnel Today

MPs are urging the government to close ‘once and for all’ the loopholes that allow some companies to exploit work insecurity and undercut Britain’s outstanding employers.

In its inquiry into the Employment Rights Bill, currently heading to report stage in its passage through Parliament, the Business and Trade Committee heard from business groups worried about the rising cost of doing business and firms citing a need for labour flexibility. But the Committee found evidence, across business sectors and types, of exploitation enabled by work insecurity.

Committee chair Liam Byrne said “Our committee has heard loud and clear that getting the right workers for the right roles is the number one challenge for British business trying to grow. It’s obvious we can’t fix that problem by letting rogue firms sidestep new rules and mistreat their workforce.

“We know that business is worried about the rising costs of employment but we also heard how Britain’s most outstanding employers are fantastic places to work with tried and tested ways to partner with their workforce. But we’ve also taken evidence about abuse of workers that has frankly horrified us.”

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