This week, in a major turnaround the UK government has revised its Employment Rights Bill proposals in line with these calls from stakeholders and beyond. Peter Kyle At time of writing, Peter Kyle has inherited the role of business secretary, replacing Jonathan Reynolds. Since his appointment, he has been key in steering pro-rod legislation with former deputy PM Angela Rayner.
At a recent CBI Summit, Kyle addressed the business community. For the rate change, he promised to respond to their specific concerns that the change would impact their ability to hire. He assured business leaders of his commitment to defending their interests. Now he’s laser-focused on making sure they’re not going to “lose” over these proposed changes to the bill.
The amended legislation initially sought to remove the qualifying period for protection against unfair dismissal. It added back a much lighter-touch probationary period, which they intend to maintain only until final adoption. The new rule goes beyond the administration’s typical employee-friendly posture. If they have been in their post for under six months then they are ineligible to sue for unfair dismissal. In addition, the qualifying period for bringing an unfair dismissal claim has been cut from two years to six months.
Kyles enthusiasm incited his uncompromising defense to push past the parliamentary time-sucks preventing the bill from moving. He pledged to do “whatever it takes” to accelerate its rollout. He promised that new businesses would, and said he was confident that employees would have their voices heard too. Along the way, they’ll tackle the nitty gritty of an employment rights organizing model.
“The voice of business, the voice of people who work in business, will be heard when we get down into the weeds of implementing those key parts of the employment rights bill. And yes, I’m talking about zero-hours contracts and day-one rights,” – Peter Kyle
Those changes have led to both celebration and outrage from advocates on the left and progressives as well as within the labor movement. Kemi Badenoch, the Conservative Party leader, called the government’s backtracks “another shaming U-turn for her government.” In her testimony, she outlined how these changes would make it more difficult for businesses to maintain stability and grow.
“Labour talk about stability, but govern in chaos. No company can plan, invest or hire with this level of uncertainty hanging over them,” – Kemi Badenoch
Trade unions are staging protests and joining legal battles to show their discontent with the amendments. For their part, advocates say the bill has turned into a “shell of its former self.” Sharon Graham, general secretary of Unite, voiced concern that these continuous changes will leave workers nervous about new protections they are promised.
“These constant row-backs will only damage workers’ confidence that the protections promised will be worth the wait. Labour needs to keep its promises,” – Sharon Graham
Paul Nowak, general secretary of the TUC, reiterated the importance of focusing on winning new, hard-fought rights in law. This is an important step but it needs to happen yesterday.
“The absolute priority now is to get these rights – like day-one sick pay – on the statute book so that working people can start benefiting from them from next April,” – Paul Nowak
In a rebuke to labor representatives, six of the biggest business lobby groups applauded the government’s announcement to amend the bill. They highlighted changes in a parliamentary procedure they said would make it easier for the bill to be accepted in Parliament.
“Businesses will be relieved that the government has agreed to a key amendment to the employment rights bill which can pave the way to its initial acceptance,” – Six business lobby groups
Public input on the Employment Rights Bill is due soon, but the debate is already getting contentious. Stakeholders are still working out its implications for employers and employees alike. We appreciate the changes the government has made in these latest revisions to improve worker protections. We want to reassure businesses that there is stability in the hiring market too.