Joanne Davidson, director of policy and insights at Edinburgh Chamber of Commerce, says the chamber has expressed “measured concern” about the UK Government’s Employment Rights Act 2025.
“While we absolutely support the ambition to strengthen worker protections, we believe elements could place additional pressure on employers,” she adds.
“Representing businesses across Edinburgh and the surrounding region, many of our members already prioritise fair pay, secure contracts and positive workplace cultures.
“However, several proposals within the legislation – including changes to unfair dismissal rules, reforms to collective redundancy processes and expanded trade union rights – raise important questions for employers.”
Potential changes to collective redundancy consultation requirements, she believes, could increase complexity for organisations managing restructuring or responding to economic pressures.
“We also recognise that proposals relating to trade union rights are intended to strengthen worker representation.
“However, it will be important that any changes maintain a constructive balance that supports collaboration between employers and employees while allowing businesses the flexibility they need to operate effectively.”
It will be important that changes support collaboration between employers and employees
- Joanne Davidson
She concludes: “We are not opposed to employment reform in principle.
“Rather, we believe continued dialogue between government and the business community will be essential to ensure the final legislation supports fair work while enabling businesses to grow, invest and create jobs.”
Keith Mason, director at Hays Scotland, adds: “The bill is set to significantly expand employers’ responsibilities and reduce flexibility across hiring, managing, and dismissing staff.
“However, despite the increased regulatory burden, many employers have become far more adept at managing shocks after several years of economic and labour-market disruption.
“The prevailing sentiment is pragmatic: organisations recognise the need to adapt, but they are determined to maintain business-as-usual momentum while navigating a more regulated environment.”