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Legislative bills

Ministers Accused of "Lurching from One Extreme to Another" on Employment Rights Bill

Strategic Insights

— 1 min read

The government's Employment Rights Bill has come under fire from the Resolution Foundation think tank, which claims that the plans to give workers day-one rights to claim unfair dismissal will make it harder for businesses to hire. The think tank has urged ministers to amend the bill to reduce the qualifying period for unfair dismissal protection from two years to three or six months. The Conservatives have backed the six-month threshold, citing concerns that the bill will impose an annual £5 billion cost to business and exacerbate the backlog of employment tribunal claims.

Key Takeaways:

  • The Resolution Foundation think tank has accused ministers of "lurching from one extreme to another" with plans to give workers day-one rights to claim unfair dismissal, citing concerns that it will make it harder for businesses to hire.
  • The think tank has urged ministers to amend the Employment Rights Bill to reduce the qualifying period for unfair dismissal protection from two years to three or six months.
  • The Conservatives have backed a six-month threshold, citing concerns that the bill will impose an annual £5 billion cost to business and exacerbate the backlog of employment tribunal claims.
  • Britain's largest employer groups have also written to peers warning that the bill will cause "significant damage to employment and growth in this country".
  • The shadow business secretary, Andrew Griffith, has accused the government of lacking the "backbone" to stand up to trade union paymasters or take tough decisions.
  • Job vacancies have decreased, with 491,000 claims awaiting employment tribunal resolution.

Statistics:

  • £5 billion: annual cost to business if the Employment Rights Bill is not amended.
  • 491,000: number of claims awaiting employment tribunal resolution.
  • 2 years: current qualifying period for unfair dismissal protection.
  • 6 months: proposed new qualifying period backed by the Conservatives.
  • 2023: date when the conservatives are urging peers to back the amendment in the house of lords.

Sources:

  • Resolution Foundation think tank
  • Conservatives
  • Britain's largest employer groups (as mentioned in the original text)

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