Reshuffle sparks fears over Employment Rights Bill

Rayner resigned on Friday after she was found to have breached the ministerial code when she failed to pay enough stamp duty on her flat in Hove.

Prime minister Keir Starmer has since made a number of senior and junior ministerial changes, including removing Justin Madders from his position as employment rights minister. Alongside Rayner, Madders was one of the main architects of the Bill, which passed its third reading in the House of Lords last week.

Announcing his departure on X, Madders said it had been “a real privilege” to serve as minister for employment rights.

“Sadly it is now time to pass the baton on – I wish my successor well and will do what I can to help them make sure the ERB is implemented as intended.”

Pat McFadden moved from the Cabinet Office to a new role as work and pensions secretary, replacing Liz Kendall, who attracted criticism for proposals to drastically tighten access to welfare benefits. She becomes the new science, innovation and technology secretary.

Changes prompt concern

The reshuffle prompted concern from unions. The TUC urged the government to “stay on course” in delivering the Employment Rights Bill.

General secretary Paul Nowak said the Bill would “give a massive boost for millions of working people in this country, lots of whom are in insecure, low-paid employment”.

“Having people in well-paid, secure employment is good for everybody. It’s good for workers, but it’s also good for the good employers who are being undercut by the cowboys, and it’s good for the UK economy,” he added.

Christina McAnea, general secretary of Unison, told the BBC that it was “very significant and very worrying” that Madders had been sacked, and that business secretary Jonathan Reynolds, another supporter of the Bill, had been moved to chief whip.

“It doesn’t send out a very good message that the people who were absolutely committed to driving through the employment rights bill are no longer doing those jobs,” she said.

The Unite union expressed concern that the reshuffle could mean the government’s commitment to banning exploitative practices such as “fire and rehire” would be “nothing more than a burnt-out shell”.

Bill amendments loosened restrictions

In July, the government made amendments to the Bill to water down restrictions on dismissing workers only to rehire them on less favourable terms.

Unite general secretary Sharon Graham said: “This, along with the government’s reshuffle, taking out all ministers who have worked with unions on the Bill, signals a move in the wrong direction.

“Workers will feel duped when they realise the Bill is a paper tiger. Unscrupulous employers will continue to exploit workers and the Bill will do little to combat that.’”

Business groups believe the reshuffle could be an opportunity to “fix” issues with the Bill they feel to be anti-growth.

Craig Beaumont, director of policy at the Federation of Small Businesses, said that 92% of members were worried about the legislation because they do not have HR teams and the new rights for workers “scare” them.

He told the BBC that Rayner’s resignation and Madders’ sacking could allow for some compromise.

The Commons will now consider the Lords’ proposed amendments to the Bill on 15 September. If amendments are rejected, then the Bill returns to the House of Lords to be debated again, after which it will receive Royal Assent.