Employment reform must work for business

The UK Government has revealed its Employment Rights Bill which marks the biggest shake-up of employment law in decades.

Responding to the announcement, Sarah Bailey, CEO at the West Cheshire & North Wales Chamber of Commerce commented:

“The Employment Rights Bill sets out vast changes that will impact businesses of all shapes and sizes. It is imperative that employers are engaged and supported through this every step of the way.

“There is potential to get more people into work and boost economic growth, as long as the right balance is struck. If the process is mishandled, there is a danger these changes could have the opposite effect.

“It is important to stress that the legislation we are seeing today is a starting point. The framework is being established with the details and mechanics of how this will operate still needing much further consultation.

“Many of these changes are going to need secondary legislation and it’s unlikely we’ll see major changes to business practices until 2026.

“Firms will want to see more detail on the timeline for these reforms and guarantees that there will be no surprises.

“We all recognise that a thriving workforce is more productive and that drives growth. We will continue to work with Government and the unions to ensure that a balance is reached. One that encourages businesses to recruit and has the right support for employees.”

“We are keen to hear the thoughts of businesses from the region on the Employment Rights Bill and please get in touch on 01244 669988 or email info@wcnwchamber.org.uk”

What changes are included in the Employment Rights Bill?

• Employees can claim unfair dismissal from day one in their job which is a big change from the current two-year qualifying period. Employers will be able to operate probation periods.

• Parental and bereavement leave to be introduced from day one, currently have to be with the company for more than a year.

• End zero-hour contracts.

• End practices of fire and rehire and fire and replace.

• Make flexible working the “default” unless employers can prove it is “unreasonable”.

• Strengthened protections for new mothers, making it unlawful to dismiss a woman who has had a baby for six months after her return to work (this excludes specific circumstances).

• Establish a new Fair Work Agency with new powers to enforce holiday pay.

• Statutory sick pay – removing the lower earnings limit to make it available to all workers, as well as removing the threeday waiting period.

Niamh Kelly, Director of The HR Dept Wrexham and Chester and Strategic Partner of the Chamber of Commerce, commented:

“We welcome the introduction of the new bill as we recognise the intent to support employers to operate in a nonexploitative and ethical way.

“However, greater protection for employees needs to go hand in hand with the ability of a business to focus on their economic growth and it will be important to study the detail of the Bill.

“The more complicated and restrictive the legislation, the more difficult it will be for SME’s in particular, to interpret and implement. ‘Codes of practice’ only go so far in helping employers grapple with significant changes in employment law!"