More than 120 firms from Britain’s £60 billion facilities management (FM) sector have signed an open letter to the government warning that the proposed Employment Rights Bill could have damaging consequences for both employers and workers.
The letter, co-authored by Dominic Ponniah, CEO of London-based Cleanology, and Malcolm Hills, CEO of Think FM, expresses “deep concern” over elements of the bill — in particular, provisions that would grant full employment rights from day one and expand union powers across the economy.
The signatories include some of the UK’s most prominent FM providers, such as Mitie, OCS Group, and Churchill Group, whose work underpins the daily operation of essential national infrastructure, from hospitals and offices to airports and factories.
Together, the FM sector employs more than 1.4 million people and contributes £60 billion annually to the UK economy.
In the letter addressed to Prime Minister Sir Keir Starmer, Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds, the group warns that changes in the Bill risk stifling opportunity and job creation.
“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.
Specifically, the introduction of unfair dismissal rights from day one of employment is being flagged as a potential disincentive for businesses to hire.
Dominic Ponniah said: “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.”
“Probationary periods are a vital part of responsible recruitment, allowing both parties to assess suitability before long-term commitments are made.”
While many employers in the sector say they support the overall aim of protecting workers’ rights and raising employment standards, they believe the current form of the Bill may jeopardise the very goals it seeks to achieve.
The letter calls for more nuanced consultation with businesses — particularly those in labour-intensive industries like FM — to ensure that proposed reforms strengthen rather than undermine fair recruitment, workforce development, and job access.
Facilities management has long been recognised for its role in offering employment to a broad cross-section of society, often creating accessible entry points for people with limited work experience or those re-entering the labour market.
The industry’s leaders warn that by introducing immediate employment protections without room for early assessment, the Bill could reduce opportunities for those on the margins — including young people, ex-offenders, and career changers — whom many FM firms actively seek to support.
The Employment Rights Bill, expected to be a flagship piece of legislation for the new Labour government, includes several reforms aimed at increasing job security, improving collective bargaining rights, and boosting pay transparency.
However, today’s letter adds to a growing chorus of concern from employers that the sweeping changes may have unintended consequences for SMEs, temporary workforces, and high-turnover sectors like hospitality, care, logistics, and facilities management.
With more than 128 FM companies now openly calling for changes to the Bill, pressure is mounting on the government to engage more directly with industry leaders before finalising the legislation.
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Facilities management firms warn new employee rights bill could harm hiring and economic growth
