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The government has chosen to eliminate its central measure from the employee protections legislation, substituting the guarantee from wrongful termination from the start of work with a half-year threshold.

Industry Concerns Prompt Change in Direction

The step follows the business secretary addressed businesses at a key gathering that he would listen to concerns about the consequences of the policy shift on employment. A trade union source remarked: “They have given in and there might be additional to come.”

Negotiated Settlement Reached

The national union body announced it was prepared to accept the negotiated settlement, after prolonged negotiation. “The absolute priority now is to secure these protections – like first-day illness compensation – on the official legislation so that working people can start gaining from them from next April,” its head official declared.

A union source added that there was a opinion that the 180-day minimum was more feasible than the less clearly specified extended evaluation term, which will now be scrapped.

Political Reaction

However, lawmakers are likely to be unnerved by what is a clear violation of the administration’s election pledge, which had vowed “immediate” safeguards against unfair dismissal.

The new corporate affairs head has succeeded the previous office holder, who had guided the act with the second-in-command.

On the start of the week, the secretary pledged to ensuring companies would not “suffer” as a consequence of the changes, which included a restriction on zero-hour contracts and immediate safeguards for staff against wrongful termination.

“I will not allow it to become zero-sum, [you] give one to the other, the other loses … This has to be handled correctly,” he stated.

Parliamentary Advance

A union source explained that the changes had been approved to enable the act to progress faster through the House of Lords, which had significantly delayed the bill. It will mean the minimum service period for wrongful termination being lowered from 24 months to 180 days.

The legislation had initially committed that duration would be eliminated completely and the government had proposed a more flexible probation period that companies could use instead, limited in law to 270 days. That will now be eliminated and the legislation will make it impossible for an employee to pursue unfair dismissal if they have been in position for less than six months.

Worker Agreements

Worker groups asserted they had won concessions, including on costs, but the move is likely to anger radical lawmakers who regarded the employment rights bill as one of their main pledges.

The act has been modified on several occasions by rival lords in the upper house to meet major corporate requirements. The official had declared he would do “what it takes” to overcome procedural obstacles to the act because of the upper house changes, before then consulting on its implementation.

“The voice of business, the voice of people who work in business, will be heard when we get down into the weeds of applying those crucial components of the employment rights bill. And yes, I’m talking about non-guaranteed work agreements and day-one rights,” he commented.

Opposition Response

The opposition leader called it “another humiliating U-turn”.

“The government talk about stability, but manage unpredictably. No company can plan, spend or hire with this level of uncertainty looming overhead.”

She stated the legislation still featured provisions that would “damage businesses and be harmful to economic growth, and the rivals will contest every single one. If the administration won’t scrap the most damaging parts of this awful bill, we will. The nation cannot build prosperity with more and more bureaucracy.”

Official Comment

The responsible agency announced the outcome was the product of a settlement mechanism. “The administration was pleased to support these discussions and to set an example the merits of working together, and continues dedicated to further consult with trade unions, business and companies to enhance job quality, assist companies and, importantly, achieve prosperity and good job creation,” it stated in a release.