Doncaster Chamber Speaks Up for Businesses on Employment Rights Bill

As the Government’s Employment Rights Bill moves through Parliament, Doncaster Chamber has written to local MPs and members of the House of Lords, raising serious concerns about how this legislation could affect businesses across our region, particularly small and medium-sized enterprises (SMEs).

Our message is clear: we support the principle of making work pay, and we welcome sensible efforts to protect workers. But if implemented in its current form, the Employment Rights Bill risks undermining hiring appetite, investment confidence, and regional growth; especially here in South Yorkshire, where unemployment has already risen to 4.9%.

What We’re Doing on Your Behalf...

Over the past few months, we’ve been speaking directly to employers in Doncaster and across South Yorkshire to understand how these changes could impact your operations. We’ve also fed into national consultations through the British Chambers of Commerce and our leadership on the South Yorkshire Local Skills Improvement Plan; which has engaged more than 1,300 businesses.

We’ve now sent a formal letter to Parliamentarians outlining five key areas where urgent changes are needed:

Fairer and Clearer Probation Periods
The Government wants to replace the current two-year qualifying period for unfair dismissal with a 9-month statutory probation period. While this adds useful clarity, businesses are concerned that dismissals during this period could still result in tribunal claims — without clearer guidance. We’re calling for full consultation on what constitutes “legitimate dismissal” during probation to protect both employers and employees.

Balanced Sick Pay Reform
The proposal to remove the three-day waiting period for Statutory Sick Pay (SSP) could lead to more single-day absences and higher costs, particularly for sectors like hospitality, retail and care. We’re urging Government to consider a more balanced approach: start SSP from day two, not day one.

Practical Approach to Zero-Hours Reform
The Bill proposes allowing workers to request a fixed-hours contract after 12 weeks of regular work. While we support stability for workers, this timeframe is too short for seasonal businesses. We’re recommending a 26-week reference period to reflect genuine working patterns in sectors like tourism, events, and agriculture.

Protecting Proportionality in Industrial Action
Proposals to lower the union recognition threshold to just 2% and remove turnout requirements for strike ballots could lead to more frequent and unrepresentative industrial action. We’ve argued to maintain the current balance, where both employee voice and operational continuity are protected.

Proportionate Rules on Changing Contracts
The new rules around so-called ‘fire and rehire’ practices give the Secretary of State power to expand restrictions on contract changes. While we support stronger protections, we’re concerned this could make it harder for businesses to respond to economic, technological or structural change, like updating job roles or relocating offices.

What You Told Us...

We based our submission on real business feedback, including:

A national BCC survey of 1,200 firms (Jan–Feb 2025), which found:
• 33% of firms said SSP reforms would affect recruitment
• 25% said the same about zero-hours reforms
• 81% felt Government had not properly consulted

The South Yorkshire Business Growth Survey (Spring 2025), where over 400 businesses listed “Government policy” as a bigger barrier to growth than customer demand

Your insights through the LSIP process, including quotes like:

“We held back replacing staff due to living wage and NI costs [...] We’ve lost out on contracts because we couldn’t scale up fast enough.”

Many local businesses are already reducing recruitment, holding off on hiring, or shifting to part-time roles. Women and carers are particularly affected, as part-time opportunities have dropped to a four-year low.

Standing Up for You in Westminster...

We’ve called on MPs to raise these issues with Ministers at the Department for Business and Trade and the Department for Levelling Up. Our goal is to shape a final Bill that supports good jobs and responsible business growth, without placing unfair burdens on employers.

We’ll keep pressing your case and working with Parliamentarians and national partners to ensure your voice is heard as this legislation develops.

If you’d like to discuss how this might affect your business, or want to share your views, get in touch.

Sian Booth, Head of Policy and Partnerships
sbooth@doncaster-chamber.co.uk