Written by the CEO of Cleanology and the MD of Think FM, the letter highlights concerns with several elements of the Bill
The Employment Rights Bill will make several notable changes, including removing zero-hour contracts and changing unfair dismissal rights.
The letter sent is concerned with these changes and their potential impact on the facilities management profession.
The letter can be read here in full:
Dear Prime Minister, Deputy Prime Minister and Business Secretary,
We are writing as employers in the UK facilities management (FM) sector — a vital part of the economy that supports hospitals, schools, transport systems, offices, local authorities and critical national infrastructure – to raise serious concerns about key elements of the Labour Government’s proposed Employment Rights Bill.
Facilities management is a major UK industry, contributing over £60bn annually to the UK economy and employing more than 1.4m people across a wide range of roles, including cleaning, security, maintenance, catering and front-of-house services. In comparison, the UK fashion industry is worth around £21bn annually. Our sector ensures that buildings and essential services function safely, efficiently and sustainably. We are proud to provide steady employment to hundreds of thousands of people — many in entry-level, flexible, or part-time positions that serve as gateways into the workforce.
We share your ambition for a fairer, more secure labour market and welcome many of the proposals within the Employment Rights Bill — including measures to improve enforcement of existing rights, tackle exploitative practices and ensuring fair treatment for agency workers are all positive and commendable measures. These are values that many of us already uphold in our businesses, and we welcome efforts to level the playing field for employers who act in good faith.
However, we 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.
Introducing day-one unfair dismissal rights will increase the legal and financial risk of taking on new hires and discouraging employers from offering opportunities to individuals who need a first step, a second chance, or time to prove themselves – and further will discourage growth and reduce employment opportunities — especially in labour-intensive sectors like ours. Probationary periods are a vital part of responsible recruitment, allowing both parties to assess suitability before long-term commitments are made. This change will also encourage and increase the number of vexatious claims against employers, over-burdening 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 like ours 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. 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 who are public services.
Recent increases to employer National Insurance contributions have already placed a heavy financial strain on service-based industries like ours, despite warnings from the business community which have been largely ignored. At a time when inflation and operating costs are rising, this additional burden risks forcing employers to scale back hiring, reduce hours, or cut back on training and development opportunities for staff.
The facilities management sector is not dominated by large corporations; it is made up of thousands of SMEs that care deeply about their teams and communities. Most of us already go above and beyond minimum requirements. Yet we feel these changes risk penalising the good companies while doing little to deter bad players. We urge you to consult more closely with employers, especially the thousands of SMEs in the FM sector and other labour-intensive industries, before finalising these proposals. We believe reform is possible — reform that supports worker rights, rewards responsible employers and sustains jobs rather than putting them at risk.
We are ready to engage and help shape legislation that delivers lasting, balanced progress for the workers and the businesses that keep Britain running.
Over 100 FM business representatives have signed the letter
The number of signatories is demonstrative of the level of concern that the sector has for this Bill.
Earlier this week, data from a survey into the sector found that the current biggest challenges for facilities management come from budget constraints, understaffing, and barriers to technology adoption, as written for PBC Today by Kirsty Cogan.
Kirsty wrote: “As the facilities management industry evolves, improving the quality of asset data, achieving compliance and controlling costs will be the key priorities in 2025. The survey findings highlight the significant pressures faced by professionals in the sector but also show how they are driving change and innovation to address these challenges.
“It’s encouraging to see the industry increasingly prioritising technology as a vital tool for achieving compliance and reducing operating costs. To overcome the significant challenges facing the sector, technology must play a central role.”
The report and survey results can be found here.
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