Written submission from UKactive (ERB0077)
The physical activity sector has over 7,000 facilities and employing over 400,000 professionals, the physical activity sector employs over 300,000, improving health and wellbeing, tackling loneliness and creating healthy, thriving communities. Fitness activities in gyms, pools and leisure centres represent one of the largest drivers of physical activity in this country, behind only walking.
In England alone, the grassroots sport, fitness and leisure sector generates £107.2bn of social value every year, including £10.5bn in wider savings for the health and social care system. Gyms, pools, and leisure centres play a unique and vital role in promoting good health and supporting rehabilitation for people of all ages. This includes addressing mental health, heart disease, dementia, hip fractures, musculoskeletal (MSK) issues, obesity and diabetes, positioning the sector as a key partner for the NHS. Ill health among working-age individuals costs the UK economy around £150 billion annually (7% of GDP), with a 60% increase in six years, and spending on working-age health and disability is projected to reach £71 billion by 2028-29, a 51% rise. Addressing this issue is vital for economic growth, evidence, such as a Deloitte report, highlights the potential £17 billion economic benefit from healthcare savings and increased productivity if inactive workers became physically active.
The proposed Employment Rights Bill has significant implications for the sector, which is heavily reliant on flexibility and cost efficiency. While ukactive supports the Bill’s overarching aim to enhance worker protections, some proposed measures require greater flexibility and nuance to avoid unintended consequences that could impact employment opportunities and operational viability in our sector.
Zero-hour contracts are an integral component of the employment landscape within the physical activity sector, offering critical flexibility to both employers and employees. These contracts enable organisations to manage fluctuating demand effectively, such as during school holidays or seasonal peaks, while providing workers—many of whom are students or have caregiving responsibilities—with the ability to balance work alongside personal commitments. For roles such as swim teachers and fitness instructors, working hours often vary significantly throughout the year. Employees in these positions may work only a few hours per week during term time, with holiday pay calculated based on the hours worked. This variability reflects the sector's operational reality and the need for a dynamic workforce to meet shifting demand.
The proposed measures to align guaranteed hours with work patterns over the previous 12 weeks fail to account for this inherent seasonality. Imposing such requirements could disrupt the delicate balance that zero-hour contracts provide, potentially prompting organisations to move towards contractor models in an effort to preserve operational flexibility. Such a shift would deny workers key employment benefits, including holiday pay and pension contributions, thereby reducing job security and overall worker satisfaction. Additionally, many employees benefit from the flexibility these contracts offer, which allows them to fit work around studies, family life, or other jobs, particularly during peak periods like school holidays.
If these operational realities are not sufficiently acknowledged, the introduction of stricter requirements risks diminishing the sector’s capacity to maintain essential services. This could result in fewer opportunities for participation in health and fitness programmes, undermining their contribution to addressing public health challenges. Moreover, the administrative burden of justifying refusals to offer guaranteed hours may divert resources away from organisational growth and innovation, slowing the sector’s development. Restricting the use of zero-hour contracts could lead to reduced workforce availability during peak times, decreased service quality, and, ultimately, a decline in the delivery of vital community health and fitness initiatives that rely on flexible staffing to engage diverse audiences.
ukactive strongly recommends that the Bill retain flexibility in the use of zero-hour contracts while implementing safeguards to prevent exploitative practices. Specifically, the proposal to align guaranteed hours with the last 12 weeks of work patterns should be adjusted to reflect the seasonal nature of the sector. We recommend extending the reference period to better account for these variations, which would enable organisations to maintain adaptability in delivering essential services while ensuring employees have greater predictability in their working hours.
Flexible working is an important aspect of modern employment, and many ukactive members already have well-established processes for considering flexible working requests. However, the proposed changes, which would require employers to justify refusals in greater detail, could place undue administrative burdens on organisations. This is particularly problematic for roles that require physical presence, such as lifeguards, swim teachers, or gym supervisors, where operational needs must take precedence.
ukactive supports maintaining the current framework, which allows employers to refuse requests for well-documented reasons and recommends the development of clear guidance to define what constitutes “reasonable practicability.” This is especially important in a sector where a consistent on-site workforce is crucial for ensuring customer safety, providing high-quality service, and fostering a sense of community among staff and users. These factors are integral to the sector’s ability to deliver programmes that encourage physical activity, tackle health inequalities, and support mental wellbeing.
If these operational realities are not considered, the introduction of stricter requirements could reduce the sector’s capacity to maintain essential services. This could lead to reduced participation in health and fitness programmes, undermining their potential to address public health challenges. Furthermore, the administrative burden of justifying refusals may divert resources away from growth initiatives, slowing down organisational development and innovation within the sector
The proposal to remove the three-day waiting period and lower earnings threshold for statutory sick pay is likely to increase costs for employers and may lead to misuse. ukactive supports improving access to SSP, but we advocate a balanced approach is needed to mitigate potential financial strain on organisations. For many members, particularly those operating with tight margins or in publicly funded settings, the full cost of SSP represents a significant challenge. Some have reported higher rates of absenteeism where SSP is available from day one, which can disrupt operations and place additional pressures on remaining staff.
The financial burden of SSP could limit organisations’ ability to invest in workforce development, infrastructure, and community programmes. If smaller or resource-constrained organisations are disproportionately affected, this could result in reduced staffing levels, lower-quality services, and diminished capacity to meet the growing demand for health programmes.
ukactive recommends introducing SSP from day two, rather than day one, to provide a fair compromise that enhances worker protections while managing costs. We also advocate for mechanisms that allow employers to recover or share these costs, particularly for smaller organisations or those heavily reliant on public sector contracts. Without these adjustments, the increased costs could undermine organisational resilience and constrain growth across the sector.
The removal of the two-year qualifying period for unfair dismissal, replacing it with day-one rights, raises significant concerns about the potential for increased vexatious claims and associated legal costs. Probation periods, typically lasting three to six months, are an essential tool for evaluating new hires and ensuring they are a good fit for both the role and the organisation.
ukactive recommends reducing the qualifying period for unfair dismissal to one year rather than introducing day-one rights. This strikes an appropriate balance between enhancing worker protections and allowing employers to assess employees effectively. Furthermore, we recommend clear guidance on probation management and dismissal processes be developed to support organisations in implementing fair and consistent practices to address performance concerns within reasonable timeframes.
If the proposed changes are implemented as written, organisations may become more cautious in hiring decisions, particularly for permanent roles. This could result in increased reliance on casual contracts or temporary staff, reducing workforce stability and limiting opportunities for long-term professional development. Additionally, the administrative and legal burdens associated with day-one rights could divert resources away from service delivery and growth initiatives, further constraining the sector’s potential to expand and innovate.
5. National Minimum Wage (NMW)
Frequent increases to the National Minimum Wage (NMW) have far-reaching implications for the fitness and leisure sector, including organisations that already pay above the minimum threshold. One of the most significant consequences is the compression of pay differentials, particularly for roles situated just above the minimum wage bracket. This reduces the financial incentive for employees to progress into higher-responsibility roles, such as supervisory or management positions. Over time, this can undermine staff motivation, limit career progression opportunities, and result in decreased retention of high-performing individuals. For roles with structured career pathways—such as fitness instructors, personal trainers, and facility managers—this compression effect risks devaluing progression and weakening the sector’s ability to attract and retain talent.
Organisations delivering services through public funding or local authority contracts face particular challenges. For these operators, the ability to adjust pricing to meet wage increases is constrained by affordability requirements, especially for community-focused facilities serving lower-income demographics. The financial pressure of increased wages—without corresponding adjustments in funding—risks destabilising these organisations. This could lead to reduced staffing levels, fewer programme offerings, and limited investment in infrastructure and workforce development. In some cases, facilities may face closure, thereby reducing access to vital services that support public health, social engagement, and physical activity initiatives.
The cumulative effect of these challenges could restrict growth across the sector and hinder the delivery of essential community health programmes, such as social prescribing initiatives or exercise-based interventions for chronic conditions. These services often rely on consistent funding and staffing levels, which wage volatility can jeopardise.
To mitigate these challenges, ukactive recommends that future NMW increases are linked to the Consumer Price Index (CPI), ensuring that adjustments remain predictable and sustainable for employers. Clear timelines and advance notice of wage changes would further support financial planning and reduce operational disruption. By introducing these measures, employers in the fitness and leisure sector could better manage financial pressures, maintain service quality, and continue to invest in workforce progression and community wellbeing.
Fire and Rehire
While ukactive agrees with the intent to prevent exploitative practices it cautions that limiting flexibility to make necessary contractual adjustments could hinder adaptability in challenging economic climates. ukactive recommend ensuring these measures retain sufficient flexibility for organisations to make essential contractual adjustments in response to economic or operational challenges.
Trade Union Access
Increased access could lead to adversarial relationships and disrupt effective non-unionised engagement models already in place. Enhanced trade union access rights should be implemented with care to avoid disrupting effective employee engagement frameworks already in place in non-unionised organization. If not carefully implemented, these measures could increase operational complexity, reduce workforce flexibility, and create additional costs, hindering growth and innovation within the sector.
ukactive welcomes the Employment Rights Bill’s intent to improve employee protections and create a more equitable working environment.
However, ukactive urges policymakers to ensure these measures are implemented in a way that reflects the specific needs and constraints of the sector. By incorporating greater flexibility, clear guidance, and practical solutions, the Bill can achieve its objectives while supporting the sustainability of organisations delivering essential services to communities across the UK.