UK government's worker rights overhaul faces business criticism

Key facts

• New trade union access regulations have come into force without clear guidance for employers.
• Small and medium-sized enterprises (SMEs) are particularly affected by the lack of clarity.
• The Office for Budget Responsibility forecasts a negative economic impact from the Employment Rights Act.
• Government is consulting on reforms to whistleblowing protections, closing January 8, 2027.
• Legislation restricting non-compete clauses is planned.

The UK government's latest phase of employment law reforms is facing criticism from businesses due to a perceived lack of clarity and practical guidance. The British Chambers of Commerce highlighted concerns that new regulations, such as trade union access to workplaces, are being implemented without adequate support for employers, especially SMEs. This approach risks creating confusion and unintentional complications, according to the BCC. The Office for Budget Responsibility has also indicated that the broader Employment Rights Act may negatively impact the economy through increased uncertainty and higher labor costs.