Companies responsible for keeping Britain’s hospitals, train stations, airports, offices, warehouses, and factories clean and secure are raising alarms about the potential “devastating impact” of the government’s employment rights bill.

In an open letter addressed to Sir Keir Starmer, his deputy Angela Rayner, and Business Secretary Jonathan Reynolds, 128 firms—including prominent names such as OCS Group, Churchill Group, and Mitie—are calling on the government to reconsider its proposed legislation.

The letter warns of what the signatories believe may be the “serious unintended consequences” arising from the significant changes to employment law currently being debated in parliament. Key reforms proposed in the bill include ensuring protection from unfair dismissal starts on the very first day of employment, enhancing union representation, and instituting more favorable sick pay policies, which would be the financial responsibility of employers.

According to the letter’s authors, “We are deeply concerned that certain provisions within the bill… could adversely affect both responsible employers and the workers whom the bill intends to safeguard.”

The signatories cautioned that increased costs and the risks associated with making incorrect hiring decisions could compel some businesses to either cut staff, reduce employee hours, decline new contracts, or even withdraw from the market entirely.

Dominic Ponniah, CEO of the office and commercial cleaning company Cleanology and a co-author of the open letter, expressed that apprehensions regarding the negative impacts of the legislation had been accumulating for months but escalated following a recent rise in employers’ national insurance contributions to 15 percent.

“People are beginning to feel the strain on their bottom lines, and it’s crucial that we express our concerns,” Ponniah remarked.

Among the 128 signatories is Josie Marshall-Deane, regional director at OCS Group, which provides services like passenger screening and surveillance at airports, alongside Charlotte Parr, executive director of Churchill Group—primarily owned by its employees and engaged in maintaining social housing, among other functions.

The facilities management sector employs approximately 1.4 million individuals and contributes £60 billion to the economy, which the letter’s authors claim is critical for economic growth compared to other favored industries such as fashion and agriculture. The industry consists largely of small and medium-sized businesses operating on narrow profit margins, and the proposed changes to employment law could “penalize compliant companies while failing to discourage non-compliant entities.”

The companies assert their endorsement of the government’s initiatives to combat exploitative labor practices and promote equitable treatment of agency workers.

The government plans to gradually implement these new rights, with estimates suggesting they could impose an additional £5 billion in costs on the economy annually. Acknowledging the disproportionate impact on smaller firms, the government has indicated that most new regulations will not take effect until next year.

A government representative stated, “Insecurity and poor health in the workplace negatively affect not just employees but also productivity and competitiveness across businesses and the overall economy.”

“This is why our transformative plan aims to provide the largest enhancement to workers’ rights in a generation, with measures that have garnered substantial support from both the business sector and the general public,” the spokesperson added.

“We have conducted thorough consultations with businesses regarding our proposals and remain committed to engaging with them as we implement legislation that benefits both employers and working individuals by returning funds to their pockets.”