The upcoming Employment Rights Bill in the UK is no small shakeup. It looms as a significant shift in UK employment law, introducing over 28 reforms aimed at stronger workforce protections. But for employers, the employment law changes in the UK are a massive hurdle. For starters, employers must now rush to work on key obligations such as mandatory equality action plans, stricter outsourcing rules in the public sector, and proactive measures to prevent sexual harassment. This means HR professionals in the UK are working day and night to reform policies. What’s not being discussed is how these UK employment law changes could further add layers of bureaucracy in the long run.
Critics such as the Federation of Small Businesses (FSB), have called the Employment Rights Bill a “chainsaw to job-killing measures.” It is being argued that the bill’s well-intentioned reforms overlook the real-world issues of running a company. The government’s own impact assessment estimates an annual 5 billion hit to businesses.
What’s clear is that the Employment Rights Bill of 2025 isn’t just about fair play. The question of survival comes into being at some point. SMEs, which shoulder an estimated 60% of these costs, are now vulnerable. Umbrella companies in labor supply chains also face scrunity, while public sector outsourcing could soon turn into a compliance minefield.
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