🔗 Share this article

The government has chosen to eliminate its primary measure from the workers’ rights act, replacing the right to protection from unfair dismissal from the start of work with a six-month threshold.

Corporate Worries Prompt Change in Direction

The move is a result of the business secretary told firms at a key conference that he would consider worries about the impact of the law change on hiring. A labor union insider stated: “They have backed down and there could be further changes ahead.”

Negotiated Settlement Achieved

The worker federation stated it was willing to agree to the negotiated settlement, after prolonged negotiation. “The primary focus now is to secure these protections – like immediate sick leave pay – on the statute book so that working people can start gaining from them from next April,” its general secretary commented.

A labor insider added that there was a view that the 180-day minimum was more workable than the vaguely outlined 270-day trial phase, which will now be abolished.

Political Reaction

However, lawmakers are anticipated to be concerned by what is a direct breach of the administration’s election pledge, which had promised “day one” protection against wrongful termination.

The new corporate affairs head has replaced the earlier office holder, who had guided the bill with the deputy prime minister.

On Monday, the secretary committed to ensuring businesses would not “be disadvantaged” as a result of the changes, which included a ban on flexible work agreements and day-one protections for staff against wrongful termination.

“I will not allow it to become zero-sum, [you] favor one group over another, the other suffers … This has to be handled correctly,” he remarked.

Legislative Progress

A worker representative explained that the amendments had been accepted to allow the bill to progress faster through the House of Lords, which had greatly slowed the legislation. It will lead to the eligibility term for unfair dismissal being lowered from two years to half a year.

The legislation had originally promised that period would be removed altogether and the ministry had proposed a lighter touch trial phase that companies could use as an alternative, legally restricted to three quarters of a year. That will now be scrapped and the statute will make it impossible for an employee to pursue wrongful termination if they have been in post for under half a year.

Labor Compromises

Worker groups asserted they had secured compromises, including on costs, but the step is likely to anger leftwing MPs who considered the worker protections legislation as one of their primary commitments.

The act has been amended repeatedly by other party lords in the Lords to meet major corporate demands. The minister had stated he would do “what it takes” to resolve legislative delays to the legislation because of the upper house changes, before then discussing its implementation.

“The corporate perspective, the opinions of workers who work in business, will be considered when we delve into the details of enforcing those essential elements of the employee safeguards act. And yes, I’m talking about zero hours contracts and first-day entitlements,” he said.

Opposition Response

The opposition leader labeled it “a further embarrassing reversal”.

“They talk about certainty, but manage unpredictably. No company can prepare, spend or hire with this amount of instability hanging over them.”

She stated the act still contained measures that would “harm companies and be harmful to economic growth, and the critics will contest every single one. If the administration won’t abolish the worst elements of this awful bill, we will. The nation cannot achieve wealth with growing administrative burdens.”

Government Statement

The responsible agency stated the conclusion was the outcome of a settlement mechanism. “The administration was happy to support these discussions and to set an example the benefits of working together, and stays devoted to keep discussing with labor organizations, industry and employers to make working lives better, assist companies and, crucially, realize prosperity and quality employment opportunities,” it said in a statement.