Business groups push to pass the Workers’ Rights Bill

In a move of solidarity, six of the UK’s biggest business groups have written to the business secretary, Peter Kyle, urging the Government to find a way of pushing through the much-debated Workers’ Rights Bill. 

The employers’ groups – the Confederation of British Industry, the British Chambers of Commerce, the Chartered Institute of Personnel and Development, the Federation of Small Businesses, the Recruitment and Employment Confederation, and Small Business Britain – have united to urge a solution. 

Business groups warn against further delays

Business groups claim that any more delays could see what is already a fragile agreement between parties, including trade unions and the Government, break down.

In the letter (PDF), they acknowledge the negotiations to get an agreement on the six-month qualifying period for unfair dismissal (which saw Labour drop a key manifesto pledge). They add, though, that there are still “issues related to guaranteed-hours contracts, seasonal and temporary workers, thresholds for industrial action, and the practical application of union rules” that need addressing. 

However, they write: “On the Bill more broadly, we believe that the best way forward is to keep working with the government and trade unions to find balanced solutions through secondary legislation. To avoid losing the 6 months qualifying period, we therefore believe that now is the time for Parliament to pass the Bill.”

Another hold up

With the country now heading towards Christmas, the business organisations are arguing that a decision is now imperative, not least for businesses to prepare. The Workers’ Rights Bill is currently stalled after backing and forthing between the two houses and is the ping-pong battle that they want to end. 

In October, the House of Lords tabled several amendments including proposals on day-one unfair dismissal rights, reforms to zero-hour contracts, and trade union rules. When the Bill came back to the Commons, some of these amendments were rejected. 

The Bill has now been passed by MPs by a majority of 215, including an agreement to remove a cap on unfair dismissal compensation, which overturns a vote in the Lords last week. But the Bill now goes back to the Lords, and this, the business bodies are concerned, could see it held up yet again. 

Employee versus employer

There has been much support for the increase in workers’ rights that the Bill promises. One study published in September suggested that the reforms could positively impact as many as one million workers, especially those on zero-hours contracts. 

However, SMEs have voiced concerns that the changes will result in financial burdens that they will struggle to bear. It has seen an increasingly large void open between the needs of the employees and the needs of the employers. 

Recruitment firms, for example, are arguing that the zero-hours contract changes are untenable as their business models rely on workers being able to be sent into a role on an often short-term basis and then working as needed. Major recruitment agencies, including Hays, Adecco, and Manpower, have described the changes as “unworkable”.

The hospitality industry, already recording low confidence, is also stating that the zero-hours changes will hit hard, reliant as it is on these contracts, tipping culture, and flexible shifts.

With experts warning that even if the Bill passes the Lords, there is a huge amount of work to do, what businesses do have is some time to prepare for what the changes could mean for their business model. However, the key hurdle remains, and despite lobbying, the decision on the day remains with the Peers.