Day-one unfair dismissal amendment welcomed by businesses

The government’s amendment to day-one unfair dismissal rights has been welcomed by the recruitment sector and employers.

Employment Rights Bill amendment

Announced in the recent Autumn Budget, the government has decided to change the qualifying period for unfair dismissals within the Employment Rights Bill.

Initially, the plan was for a day-one unfair dismissal right; however, this has now been set at six months, with several business groups welcoming this decision.

Businesses support changes

The Association of Professional Staffing Companies (APSCo UK), for example, believes that a day-one right would have created unnecessary complexity and risk for employers – particularly in sectors that rely more on flexible and project-based hiring.

It describes the move as being a ‘pragmatic and balanced approach’ that supports both employers and workers.

Responding to the amendment and explaining why this is a positive step, here’s a joint statement from the:

• British Chambers of Commerce
• Chartered Institute of Personnel and Development
• Confederation of British Industry
• Federation of Small Businesses
• Recruitment and Employment Confederation
• Small Business Britain

“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.

“We welcomed this chance to hold meaningful dialogue and believe the constructive nature of our discussions can be a template to resolve outstanding issues. 

“Businesses have always been clear that making the Employment Rights Bill work would take business, trade unions and government working together to find a landing zone for these major policy changes.

 “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 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.

“Businesses will still have concerns about many of the powers contained in this Bill. This includes guaranteed hours contracts, seasonal and temporary workers and thresholds for industrial action.

“We remain committed to working with government and unions to dealing with this in the necessary secondary legislation to implement the Bill. We must ensure that it supports opportunity for workers while avoiding damage to economic growth.

“That also means agreeing guidance and support for businesses to understand and effectively implement the many changes, alongside sufficient resources for the Fair Work Agency and tribunal system.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.