Facilities firms share ‘deep concerns’ on workers’ rights

More than 100 companies in the facilities management sector have warned of ‘deep concerns’ and ‘unintended consequences’ of the Employment Rights Bill.

In an open letter to Sir Keir Starmer, Angela Rayner and Jonathan Reynolds, executives from 128 facilities management firms including many SMEs, urged the government to consult more closely with employers, “especially the thousands of SMEs in the FM sector and other labour-intensive industries”, before finalising the bill.

Signatories to the letter, which include Cleanology, Mitie, OCS Group and IPM Facilities, said they are “deeply concerned that some of the bill’s provisions will have serious unintended consequences that could harm both good employers and the very employees that the bill seeks to protect”.

For example, they say introducing day-one unfair dismissal rights will increase the risk of taking on new hires and discourage employers from offering opportunities to individuals who need a first step, a second chance, or time to prove themselves –  “especially in labour-intensive sectors like ours”.

They described probationary periods as a “vital part of responsible recruitment” and that changes will increase the number of vexatious claims, overburdening an already overstretched tribunal system “heavily weighted in favour of the employee”.

Meanwhile, introducing statutory sick pay from day one places a new, immediate cost on employers, especially in sectors where staffing models are built around tight margins and stringent contracts.

“While we support fair and compassionate sick leave policies, the reality is that many SMEs simply cannot absorb this additional cost without significant impact,” said the letter. “This additional burden will force some employers to reduce staff headcount or reduce their hours, turn down new contracts or even exit the market altogether. None of these outcomes will benefit our employees or our customers, many of whom are public services.”

T‍he facilities management sector contributes more than £60bn annually to the UK economy and employs more than 1.4 million people in cleaning, security, maintenance, catering and front-of-house services.

A government spokesperson said: “Insecurity and poor health at work aren’t just bad for workers, they also impact productivity and drive down competitiveness in businesses and the wider economy.

“That’s why through our transformative plan for change, this government is delivering the biggest upgrade to workers’ rights in a generation, and our measures already have strong support amongst business and the public.”

The spokesperson added that businesses had been consulted extensively on the bill and that the government will engage on the implementation of legislation to ensure it works for employers and working people.

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