UPDATE: The UK government has just confirmed a dramatic shift in the Employment Rights Bill, abandoning the contentious ‘day-one’ rights. This significant change, which could reshape the landscape for businesses, was solidified just before the government’s summer recess.
The House of Lords voted last week to amend the Bill, pushing for ‘day-one’ rights to be upheld for new employees. However, in a surprising turn of events, the Department for Business and Trade has proposed to extend the qualification period to six months. This move has sparked intense reactions from legal experts and employers alike.
Colin Leckey, a partner at Lewis Silkin, called the government’s decision a “stunning U-turn.” He emphasized, “The House of Lords has repeatedly dug its heels in, leading to an impasse where a clear route forward was lacking.” This change marks a shift from the previous requirement of two years to claim unfair dismissal, now dropping to just six months.
Lawyers are reacting to this urgent update, noting that the implications for employers could be profound. Tim Gilbert, a partner at Travers Smith, stated, “This move should finally break the deadlock stalling the Employment Rights Bill in Parliament.” Employers, who have been left uncertain about the new regulations, may find some relief in the clarification provided.
Despite the reduction in immediate rights, industry experts warn of potential consequences. Caspar Glyn KC, Chair of the Employment Lawyers Association, expressed cautious optimism, “While the six-month qualification period is a step forward, it may lead to increased pressure on an already overstretched tribunal system as claims surge.”
Legal professionals are calling on Ministers to reconsider other aspects of the Bill that could significantly expand union power. James Townsend, a partner at Payne Hicks Beach, remarked, “There’s still time for Ministers to rethink and scale back other measures.”
This development is vital for both employers and employees as the UK navigates new employment laws. The ramifications of this change are expected to unfold rapidly, impacting businesses across the country.
Stay tuned for more updates as this situation develops. With the potential for a surge in tribunal claims, all eyes are on Parliament to see how these new changes will be implemented and what further adjustments may come.
