🔗 Share this article

The government has decided to remove its central policy from the employee protections bill, swapping the safeguard from unfair dismissal from the start of work with a half-year qualifying period.

Business Worries Prompt Reversal

The decision is a result of the corporate affairs head told businesses at a key conference that he would listen to concerns about the impact of the law change on employment. A worker organization source commented: “They have given in and there could be further changes ahead.”

Compromise Agreement Agreed Upon

The worker federation stated it was willing to agree to the compromise arrangement, after extended negotiation. “The absolute priority now is to get these rights – like day one sick pay – on the statute book so that employees can start benefiting from them from next April,” its general secretary stated.

A labor insider noted that there was a perspective that the six-month threshold was more practical than the vaguely outlined nine-month probation period, which will now be abolished.

Legislative Backlash

However, MPs are likely to be alarmed by what is a obvious departure of the administration’s election pledge, which had vowed “day one” security against unfair dismissal.

The new corporate affairs head has taken over from the earlier minister, who had overseen the act with the second-in-command.

On Monday, the secretary pledged to ensuring firms would not “be disadvantaged” as a consequence of the amendments, which involved a restriction on non-guaranteed hours and first-day rights for workers against unfair dismissal.

“I will not allow it to become one-sided, [you] benefit one at the expense of the other, the other suffers … This has to be implemented properly,” he said.

Legislative Progress

A worker representative explained that the amendments had been accepted to permit the bill to advance swiftly through the upper chamber, which had greatly slowed the legislation. It will lead to the eligibility term for unfair dismissal being shortened from 24 months to six months.

The legislation had initially committed that duration would be removed altogether and the ministry had put forward a lighter touch trial phase that firms could use as an alternative, capped by legislation to nine months. That will now be eliminated and the law will make it impossible for an worker to claim unfair dismissal if they have been in post for less than six months.

Labor Compromises

Worker groups maintained they had secured compromises, including on costs, but the decision is expected to upset progressive parliamentarians who viewed the employment rights bill as one of their main pledges.

The bill has been amended on several occasions by other party members in the upper house to accommodate key business requests. The minister had said he would do “all that is required” to resolve procedural obstacles to the legislation because of the second chamber modifications, before then discussing its enforcement.

“The industry viewpoint, the views of employees who work in business, will be considered when we examine the specifics of applying those crucial components of the employee safeguards act. And yes, I’m talking about zero hours contracts and first-day entitlements,” he commented.

Rival Criticism

The rival party head called it “another humiliating U-turn”.

“The administration talk about certainty, but govern in chaos. No company can strategize, spend or recruit with this amount of instability looming overhead.”

She added the legislation still featured provisions that would “damage businesses and be harmful to economic growth, and the rivals will fight every single one. If the administration won’t eliminate the most damaging parts of this flawed legislation, we will. The country cannot foster growth with increasing red tape.”

Official Comment

The responsible agency announced the conclusion was the outcome of a settlement mechanism. “The government was satisfied to support these talks and to set an example the advantages of cooperating, and continues dedicated to keep discussing with trade unions, industry and employers to enhance job quality, support businesses and, vitally, deliver economic expansion and quality employment opportunities,” it said in a announcement.