The UK Government has published its new Employment Rights Bill saying it's the biggest upgrade in workers' rights in a generation, though one leading trade union warned it contains 'more holes than Swiss cheese'.

Sir Keir Starmer promised to bring forward what was dubbed the New Deal For Workers within 100 days of the election of a Labour government.

That promise has been fulfilled, though some of the measures will not come into place until the autumn of 2026, with the bill not expected to become law until June or July 2025.

The bill will repeal two Conservative acts placing restrictions on trades unions and strike action, with new measures to protect workers from dismissal and blacklisting for trade union activity, ensure workers understand their right to join a trade union, to simplify the statutory recognition process, and bring in a new right of access for union officials to meet, represent, recruit and organise members in workplaces.

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Other provisions include reinstating and strengthening the two-tier code for public sector contracts, statutory sick pay from the first day of absence rather than the fourth, day one entitlement to paternity leave and unpaid parental leave, and increasing protection from sexual harassment in the workplace.

However, there will be no ban on zero hours contracts - instead "exploitative" zero hours contracts will be banned.

In addition, the practice of fire and rehire will still be allowed in "exceptional circumstances".

Labour had also pledged a "right to switch off" which would seek to stop employers contacting staff out of hours, but this is included in a "next steps" document for future discussion.

Other proposals set out in the Make Work Pay document released pre-election such as creating a a "single status of worker" and ensuring equal pay between in-house and contracted staff in public services are also not included.

Mick Whelan, General Secretary of ASLEF, the train drivers’ trade union, and chair of TULO, which represents all the unions affiliated to the Labour Party said: "ASLEF has long campaigned for the New Deal, working first with Andy McDonald, and then with Angela Rayner, in opposition and then in government, to produce the document which went into the party’s manifesto at the general election, and much of which is in the Employment Rights Bill to be laid before Parliament today.

Angela RaynerAngela Rayner (Image: PA)

"It will see the biggest upgrade to workers’ rights in a generation and, when it is fully complete, help us start to rebuild our communities and our country.

"The bill announced today is a vital first step in delivering the New Deal and will put in place stronger rights for workers as well as repealing recent anti-trade union laws.

"Security at work and stronger unions have never been more important. After 14 years of Tory rule, which reduced living standards for hard-working people and made life more difficult for all except the very wealthiest, it was – and is – time for a change.

"That’s what people voted for in July – and that’s what this government has promised to deliver. This is just the start of rebuilding Britain.

"We are proud to have worked with Angela, a trade unionist to her core, to bring forward this new package of laws and rights for workers. Over many years, Angela has stood shoulder to shoulder with workers across the economy fighting for a better deal and is now using her role in government – alongside Jonathan Reynolds, Secretary of State for Business, and Justin Madders, Minister for Employment Rights – to make the real change that working people need."

However, Sharon Graham of Unite was more cautious.

She said: "This bill is without doubt a significant step forward for workers but stops short of making work pay.

"The end to draconian laws like Minimum Service Levels and the introduction of new individual rights, for example on bereavement leave, will be beneficial. But the bill still ties itself up in knots trying to avoid what was promised.

"Failure to end fire and rehire and zero hours contracts once and for all will leave more holes than Swiss cheese that hostile employers will use.

"The bill also fails to give workers the sort of meaningful rights to access a union for pay bargaining that would put more money in their pockets and, in turn, would aid growth.

"Unite will continue to make the workers' voice heard as we push for improvements to the legislation as the Bill goes through parliament."

Matt Wrack, Fire Brigades Union general secretary, said: "This very significant extension of workers' rights is a huge victory for the FBU and other unions that have been at the forefront of campaigning to ensure that Labour's New Deal for Working People is fully delivered.

"The banning of zero hour contracts, the outlawing of fire and rehire, and other despicable working practices promoted by the Tories, are long overdue.

"The lives of firefighters and other public sector workers will be immeasurably improved by the new rights to bereavement leave and parental leave from day one of employment.  

"The leadership of the FBU has long fought for an irreversible shift towards extending the rights of working people.

"There must be no delay in the full implementation of this hugely welcome package.

"That must also be reflected in pay offers to firefighters and other public sector workers in the Budget later this month."  

Communication Workers Uunion general secretary Dave Ward said: “This is a positive development and the first step in rebalancing the world of work.

"It is embarrassing that we are seeing some sections of the media and big business attacking these proposals that will see workers gain rights that are common across the rest of Europe.

"We now urge Labour to move ahead with the full implementation of these plans at pace. After decades of attacks on workers from the Tories, there can be no delay in delivering these changes nor any capitulation to the demands of big business to water-down the legislation.

"Today must also herald the beginning of a new style of business leadership in the UK. CEO’s and shareholders should be motivated by building companies that provide decently-paid, secure jobs, rather than awarding themselves record pay, while their workers are paid poverty wages.

"We see today as the start of the process and we will be pushing the Labour government to go further and fully empower both workers and trade unions over the next few years. One of the most crucial messages coming from today should be to encourage every worker to join a trade union.”

Tina McKenzie, at the Federation of Small Businesses, said: “This legislation is rushed job, clumsy, chaotic and poorly planned – dropping 28 new measures onto small business employers all at once leaves them scrambling to make sense of it all.

"Beyond warm words, it lacks any real pro-growth element and will increase economic inactivity, seriously jeopardising the government’s own 80% employment target."

Robert Holland, Head of Employment Law at Aberdein Considine said: "Many of the measures announced today will not take immediate effect, instead being subject to lengthy consultations, with day one right not to be unfairly dismissed not expected to be enacted until August 2026, which again is a watering-down of the government’s previous suggestions.

"The announcement still signals the government’s intention to substantially evolve employees’ rights, but employers are sure to receive them with scepticism, as they now must work to figure out how they will comply with the new requirements, while avoiding the real risk of decreases in productivity and flexibility. The next month will see employers and employee representatives alike trying to clarify the new landscape in the employment space.”