Business Secretary Peter Kyle has launched a robust defence of the government's sweeping workers' rights reforms while urging business leaders to engage with ongoing consultations to shape the final legislation.
Defending Union Contributions and Business Engagement
Speaking at the Confederation of British Industry (CBI) conference on Monday 24 November 2025, Kyle addressed business leaders who have expressed significant worries about stringent changes to workers' rights. The Business Secretary emphasised that engagement in more than two dozen consultations would help address some of the toughest measures included in Labour's flagship Employment Rights Bill.
Kyle referenced the Labour manifesto, stating the government would turn to businesses for advice on pushing through reforms. The legislation remains caught in parliamentary ping-pong between the Lords and the Commons, adding uncertainty to the process.
His comments came shortly after CBI boss Rain Newton-Smith described the bill as "damaging" and claimed it was causing firms to pull the "brakes on hiring".
Key Measures Under Consultation
Speaking to City AM after Newton-Smith's speech, Kyle stated: "The manifesto committed me as secretary of state to this government to listen to both sides and all sides in this, and to make sure it is not zero sum. I will not pit employer against employee or employee against employer."
Businesses have raised particular concerns about several key measures, including:
- Day one rights allowing workers to sue employers for unfair dismissal from their first day of employment
- Proposals for union bosses to gain weekly access to workplaces
- The end of zero hours contracts in their current form
- Changes to probation periods
Kyle confirmed that all these measures remain subject to change pending 26 consultations, though business leaders argue that primary legislation would enforce some of the harshest measures regardless of consultation outcomes.
Political Opposition and Economic Concerns
Conservative leader Kemi Badenoch responded forcefully to Kyle's comments, describing the changes as "anti-business" and "anti-growth" just one hour after his speech. Badenoch stated that a Conservative government would repeal the bill in full and highlighted internal government analysis suggesting the cost to firms would reach £5 billion.
"If the 26 consultations were what you need to fix [the bill], then you have a real problem," Badenoch argued. "It does not help a single unemployed person into work. It does not add a single unit of productivity. It is a pure political project."
The Office for Budget Responsibility (OBR) had earlier indicated the bill would have a "net negative" effect on public finances. The fiscal watchdog is expected to provide a full assessment of the measures in the upcoming Budget, alongside analysis of tax hikes introduced by Chancellor Rachel Reeves.
Kyle concluded by urging collaboration: "All of the conjecture that you've heard about what the bill will and won't deliver is based in areas for which the consultation and implementation has not even started. Let's work together, as business and government, and as employees and unions, to get it right."
