BRC welcomes Labour dropping day-one protection from unfair dismissal

In a statement about the move, the Department for Business & Trade said it was changing its plans for the Employment Rights Bill after a “series of constructive conversations between trade unions and business representatives.” It added that it was making the change to avoid delays to the wider plan being approved in the House of Lords. 

Dropping day-one rights on unfair dismissal is a U-turn on a Labour manifesto commitment. However, the government will still be moving ahead with plans to offer sick pay and parental leave entitlement from the first day in a role. 

“This is an important, practical step in creating an Employment Rights Bill that will protect employment opportunities as well as employees. We are pleased to see that the government has listened, and this is proof that meaningful engagement between businesses, trade unions and the government can lead to positive outcomes for everyone,” said BRC chief executive Helen Dickinson.

Business Secretary Peter Kyle said to businesses at the Confederation of British Industry (CBI) conference this week that he would listen to employers’ concerns over workers’ rights. 

The CBI was one of the six business groups involved in the discussions over the bill. In a joint statement, the six bodies said: “This agreement keeps a qualifying period that is simple, meaningful, and understood within existing legislation. It is crucial for businesses confidence to hire and to support employment, at the same time as protecting workers. 

“This change addresses the key problem that must be sorted out in primary legislation. It shows that dialogue works and is a model for how to consider the important questions that need answering in regulations before new rules come into force.”

The statement added that businesses would still be concerned about many of the powers in the bill. For the retail sector, the main sticking point is plans to force businesses to offer eligible zero or low hours employees a guaranteed hours contract.

 “We now need similar engagement on other areas of the bill, which are of significant concern. For example, guaranteed hours, where current proposals would make it harder for retailers to offer local, flexible, and part-time jobs,” said Dickinson.