FACILITIES MANAGEMENT LEADERS SOUND ALARM OVER PROPOSED EMPLOYMENT RIGHTS BILL
More than 120 firms warn against unintended consequences of sweeping labour reforms
A coalition of over 120 facilities management (FM) companies — including industry giants Mitie, OCS Group, and Churchill Group — have issued a stark warning to the Government, expressing “deep concern” over the proposed Employment Rights Bill, which they say could significantly disrupt hiring practices and risk unintended harm to both businesses and workers.
The open letter, co-authored by Dominic Ponniah, CEO of London-based Cleanology, and Malcolm Hills, CEO of Think FM, was sent to Prime Minister Sir Keir Starmer, Deputy Prime Minister Angela Rayner, and Business and Trade Secretary Jonathan Reynolds. It outlines strong opposition to several elements of the draft legislation — particularly plans to grant full employment rights from day one and strengthen union powers. “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,” the letter states.
The facilities management sector, often overlooked despite its critical national role, employs 1.4 million people and contributes £60 billion to the UK economy. From cleaning hospitals to securing airports and maintaining office and factory environments, FM companies are integral to the country’s infrastructure.
Speaking on behalf of the signatories, Ponniah warned that the proposals could deter firms from taking recruitment risks. “Introducing day-one unfair dismissal rights will increase the legal and financial 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,” he said.
“Probationary periods are a vital part of responsible recruitment, allowing both parties to assess suitability before long-term commitments are made.”
The group argues that the current system already protects workers while offering employers the necessary flexibility to build resilient teams. They fear the proposed reforms may have the opposite of their intended effect, especially in labour-intensive sectors like FM, where margins are tight and turnover is high.
The full letter, including the list of 130 signatories, can be accessed online. As the Employment Rights Bill continues to make its way through early consultations, the FM sector’s unified stance signals a looming showdown between government labour reforms and the realities of Britain’s front-line industries.
