Business Secretary Peter Kyle has moved to calm business anxieties over the government's controversial workers' rights package, promising extensive consultations to address implementation concerns while ensuring the legislation passes through Parliament.
Consultation Promise Amid Parliamentary Stand-off
Speaking at the Confederation of British Industry (CBI) conference on Monday 24 November 2025, Mr Kyle emphasised that 26 separate consultation areas are mandated within the Employment Rights Bill itself, requiring his department to engage with all stakeholders before final implementation.
The legislation has become embroiled in a political stand-off between peers and MPs over key measures including banning exploitative zero-hours contracts and granting workers protection against unfair dismissal from their first day in employment.
When questioned about potential amendments to break the deadlock, Mr Kyle stated unequivocally: "I'll do what it takes to get it through, because I need to get on with the real business, which is implementing it."
Balancing Business and Worker Interests
Seeking to reassure concerned business leaders, the Business Secretary insisted the reforms were not a "zero sum" game where either employers or employees would lose out. "I will not pit employer against employee or employee against employer," he told reporters.
Mr Kyle expressed frustration that areas requiring future consultation had been filled with "people projecting onto what their worst fears are," rather than reflecting the government's intended approach. He committed to hearing both business voices and trade unions equally during the consultation process.
"The workplace is fundamentally different than it was 10 and 20 years ago," he argued. "The law has to keep up, regulation has to keep up, and the ability of government to inspire and provide the foundations for growth within individual businesses and higher productivity is what we are set upon."
Political Opposition and Business Criticism
The government's approach faced significant criticism from both political opponents and business representatives at the same conference.
Tory leader Kemi Badenoch condemned the legislation in her CBI speech, describing it as a "pure political project" that "destroys growth". She called on Chancellor Rachel Reeves to use the upcoming Budget to abandon the reforms entirely.
Mrs Badenoch particularly criticised the right to claim unfair dismissal from day one, suggesting a new employee could lodge a tribunal claim "before they've even worked out where the toilets are." She also argued the zero-hours contract measures amounted to a "de facto ban" on seasonal and flexible work, including Christmas period employment.
CBI boss Rain Newton-Smith echoed concerns about the consultation process, stating: "Lasting reform takes partnership – not a closed door." She expressed disappointment that there had been "no meaningful change" to the legislation despite business concerns being raised, describing the situation as "damaging".
As the parliamentary stand-off continues, all eyes remain on how the government will balance its worker protection commitments with business operational concerns through the promised consultation process.
