Angela Rayner’s flagship Employment Rights Bill — now passing through the House of Lords — has sent ripples through Britain’s business community. Touted by the Labour government as a long-overdue boost to workers’ rights, the bill is being condemned by critics as a threat to jobs, growth, and small business survival.

The proposals, which include the scrapping of zero-hours contracts, day-one employment rights, and expanded powers for trade unions, are designed to level the playing field for workers. Yet many warn that it may unintentionally flatten the economic landscape too — particularly for SMEs, landlords, tradespeople, and the property sector’s flexible workforce.

What’s in the Bill?

The reforms are extensive, and include:

• Abolishing zero-hours contracts

• Making unfair dismissal claims possible from day one

• Granting sick pay and paternity leave immediately upon employment

• Lowering thresholds for strike ballots

• Giving ministers power to initiate tribunal claims against companies

• Imposing more demanding redundancy consultation requirements

• Enforcing “equality action plans” for large firms

• Reinstating automatic union political funding

Backlash from the Business Community

Critics argue that the Bill amounts to a regulatory overload at a time when businesses are already grappling with rising costs, interest rates, and a sluggish economy.

Shadow Business Secretary Andrew Griffith labelled the legislation a “Bill for Unemployment,” citing Treasury estimates of £5 billion in annual costs to business and 50,000 potential job losses.

“Angela Rayner is taking a wrecking ball to the UK economy,” he warned in an open letter to business leaders.

High-profile figures from across UK commerce have echoed the concerns. Lord Karan Bilimoria, chairman of the International Chamber of Commerce, fears the reforms will “inevitably” lead to more frequent and damaging strikes. Entrepreneur Luke Johnson called the Bill “madness” during a fragile economic recovery.

Implications for the Property Sector

The property industry isn’t immune to these reforms. While large agencies and developers may have HR resources to adapt, small landlords, letting agents, and contractors often rely on zero-hours and casual contracts to manage unpredictable workloads, such as maintenance call-outs or seasonal tenancy spikes.

Ending these arrangements could lead to:

• Higher staffing costs and reduced flexibility

• Reluctance to hire additional support staff

• A chilling effect on outsourcing repairs and compliance tasks, especially in areas under regulatory pressure (e.g. EPCs, HMO licensing)

In the lettings sector, increased employment protections may also deter small businesses from growing their teams — or push them toward automation and third-party services to avoid compliance risk.

The Bill’s provisions on minister-led employment tribunal cases are also causing alarm. While designed to prevent worker exploitation, this unprecedented intervention power raises concerns over due process and reputational damage, even where no employee has made a complaint.

Divided Cabinet, Uncertain Future

There are signs of tension within the government itself. Chancellor Rachel Reeves is reportedly pushing for compromises, recognising the potential economic fallout. When pressed on whether she was seeking to limit the Bill’s impact, she told the Mail on Sunday, “We talk all the time to businesses.”

This suggests that amendments may still be on the table — particularly in relation to IHT for non-doms and the cost burden for SMEs.

What Should Employers and Landlords Do?

Whether you run a high-street letting agency or rely on casual staff for property refurbishments, this Bill — if passed in full — will affect how you operate. Preparation now is essential:

• Audit your contracts: Identify staff or suppliers affected by zero-hours and day-one rights.

• Review tribunal insurance coverage and dispute-handling procedures.

• Watch for government guidance and sector-specific exceptions (especially in property services and trades).

• Stay informed and influence lobbying efforts.

The Employment Rights Bill marks a major ideological shift — one that could reshape the balance between flexibility and fairness in Britain’s workforce. Whether it becomes a blueprint for a modern, just economy — or a blow to growth and employment — remains to be seen.