Business Secretary Peter Kyle has moved to calm business fears over the government's controversial workers' rights package, promising extensive consultations to address concerns about its implementation.
Consultation Promise Amid Parliamentary Stand-Off
Speaking at the Confederation of British Industry (CBI) conference on Monday 24 November 2025, Mr Kyle emphasised that the Employment Rights Bill was not a "zero sum" game where either workers or employers would lose out. The legislation is currently caught in a stand-off between peers and MPs over key measures including banning "exploitative" zero-hours contracts and giving workers protection against unfair dismissal from their first day in a job.
When questioned about whether the government would accept amendments to break the deadlock, Mr Kyle stated: "I'll do what it takes to get it through, because I need to get on with the real business, which is implementing it."
Reassurance for Business Community
Seeking to reassure anxious business leaders, the Business Secretary highlighted that the primary legislation going through Parliament commits him to consult in 26 different areas. "The law is going to require me to," he told reporters, expressing frustration that some areas meant for consultation had been filled with "people projecting onto what their worst fears are."
Mr Kyle insisted that "the voice of people who work in business will be heard" alongside trade unions, adding "I'm not putting anyone over anyone else." He pledged to listen to all sides and ensure the process doesn't become confrontational.
Political Opposition and Business Concerns
The government's approach faced immediate criticism from Tory leader Kemi Badenoch, who used her own CBI speech to condemn the legislation, claiming it "destroys growth" and calling for Chancellor Rachel Reeves to use the upcoming Budget to kill it off.
Mrs Badenoch argued that needing 26 consultations indicated "a really, really big problem" with the bill, describing it as a "pure political project." She particularly criticised the right to claim unfair dismissal from day one, suggesting a new hire could lodge a claim "before they've even worked out where the toilets are."
CBI boss Rain Newton-Smith echoed concerns, stating that "lasting reform takes partnership – not a closed door" and expressing disappointment that there had been "no meaningful change" to the legislation despite business concerns being raised.
Mr Kyle countered that much of the criticism was based on implementation areas where consultation "has not even started," emphasising that workplace laws need to keep pace with fundamental changes in how people work compared to 10-20 years ago.
