Doncaster Chamber urges lawmakers to rethink Employment Rights Bill amid business concerns

The letter comes as the Bill enters Report Stage in the House of Lords. While the Chamber understands efforts to improve worker protections, it cautions that the current proposals are unbalanced and could impose new burdens on employers, particularly SMEs, at a time when rising costs and economic uncertainty are already having a significant impact.

Dan Fell, Chief Executive of Doncaster Chamber, said: “We agree with the principle that work should pay and that employment law

should evolve with the times. However, the pace and structure of these reforms are deeply problematic for businesses who are already grappling with inflation, skills shortages and weak demand.

“There’s a risk that well-meaning reforms, if poorly implemented, could make it harder to hire, invest or grow, especially in a region like South Yorkshire. Poorlyu implented reform vould also cost rather than protect jobs.”

The Chamber highlights five key areas of concern, outlined in the letter sent to Parliamentarians:

1. Statutory Probation Period and Unfair Dismissal Risk

The Bill removes the current two-year qualifying period for unfair dismissal and introduces a 9-month statutory probation period. While employers welcome the clarity of a defined probationary period, there is serious concern that, without proper guidance, dismissals made during this period could still lead to costly tribunal claims. Businesses are calling for clear regulations that protect fair employer decisions and prevent unnecessary litigation.

2. Removal of Statutory Sick Pay (SSP) Waiting Days

Under the proposed Bill, employees would be eligible for SSP from day one of absence, rather than after the current three-day waiting period. Employers, especially in sectors such as hospitality, retail and care, fear this could lead to a rise in single-day absences and unaffordable costs. The Chamber is urging the Government to adopt a compromise approach by implementing SSP from day two, which would still support workers without unduly penalising employers.

3. Guaranteed Hours Contracts and Zero-Hours Workers

The Bill proposes that employees on zero-hours contracts be entitled to request a fixed-hours contract after working regular hours for a 12-week period. The Chamber argues that this reference period is far too short — particularly for businesses in seasonal sectors such as tourism, agriculture, events and education — and may disincentivise short-term hiring altogether. A 26-week reference period is proposed to better reflect real-world working patterns and demand cycles.

4. Trade Union Recognition and Industrial Action Rules

Businesses are alarmed by plans to reduce the union recognition threshold from 10% to just 2% of a workforce and to remove turnout and majority requirements for industrial action ballots. Employers believe this could lead to more frequent strikes that do not reflect the views of most workers. The Chamber supports the current framework as a fair balance between the right to strike and the need to maintain business continuity.

5. Restrictions on Amending Contractual Terms (‘Fire and Rehire’)

The Bill introduces new rules to prevent employers from changing contract terms without agreement — a response to controversial ‘fire and rehire’ practices. While businesses do not oppose stronger protections in principle, they are concerned that the scope of “restricted terms” is too broad and that future extensions via secondary legislation could limit employers’ ability to adapt to changing circumstances (e.g. relocating premises, updating job descriptions, or responding to technological change).

The Chamber’s letter draws on evidence from:

 A national survey of over 1,200 businesses across the British Chambers of Commerce network;

 The latest South Yorkshire Business Growth Survey, which included feedback from more than 400 local employers; and

 The Local Skills Improvement Plan (LSIP) for South Yorkshire, which Doncaster Chamber leads and which has engaged over 1,300 businesses in the last year.

Among the findings:

 33% of firms said the SSP reforms would negatively affect recruitment plans;

 25% said the same about changes to zero-hours contracts;

 81% felt the Government had not properly consulted on the reforms;

 69% named Government policy as one of the biggest barriers to growth, ahead of shortfalls in customer demand (39%).

The Chamber also points to wider labour market issues, including rising wage and National Insurance costs, a drop in part-time hiring (impacting carers and women in particular), and South Yorkshire’s rising unemployment rate, which hit 4.9% between March and May 2025, significantly above the national average.

“We’ve heard directly from employers who have delayed hiring, scaled back hours, or missed out on contracts because of uncertainty around staffing and costs,” Fell said. “This is not the right time to put additional pressure on businesses. We’re calling for a more measured and collaborative approach that supports workers and employers alike.”

The Chamber is backing amendments proposed by Crossbench, Conservative, and Liberal Democrat Peers, developed in consultation with the BCC and other national business groups, to ensure the Bill is both principled and practical.

Doncaster Chamber will continue to work with MPs, Peers, and the business community to help shape legislation that enables growth, opportunity, and fairness for all.