Labour’s flagship Employment Rights Bill set to become law
Labour’s flagship workers’ rights reforms are set to become law after colleagues called for an end to their protracted stance on controversial plans.
This means Labour’s election pledge to restore trade union rights, give workers 1st day sick leave and maternity rights will become law.
But Keir Starmer’s government’s victory was overshadowed by warnings from the business community that it would lead to further declines in employment and stifle growth.
With figures showing unemployment rising above 5 per cent, many businesses are already struggling with increases in national insurance contributions.
But unions welcomed the legislation, which was initially championed by former deputy prime minister Angela Rayner, despite last-minute concessions to get it through the House of Lords.
TUC General Secretary Paul Nowak said: “This is a historic day and an early Christmas present for working people across the country and the unions that represent them.
“Banning exploitative zero hours contracts, sick pay for everyone, extending parental and bereavement leave, strengthening protections for pregnant women, whistleblowers and victims of sexual harassment, repealing the Conservative Party’s anti-union laws, ensuring unions have access to workplaces, creating a fair pay deal for social care – these are just some of the landmark measures this bill will now deliver.”
The end of the impasse follows a lengthy parliamentary wrangling over the Employment Rights Bill, known as “ping-pong” as legislation was fought between the Commons and House of Lords until agreement was reached.
The upper house escalation followed calls from business groups to end the deadlock, despite the government’s assurances that unfair dismissal caps would be lifted and apparent concern about the package of measures, which also includes a ban on zero-hours contracts and first-day rights to statutory sick pay.
Welcoming the progress on the bill, Business Secretary Peter Kyle said: “This landmark legislation, soon to become law, will bring Britain’s outdated employment laws into the 21st century and offer dignity and respect to millions more people in the workplace.”
But his Conservative counterpart Andrew Griffith said that despite securing changes it remained a “bad bill”.
He warned: “This will shift costs onto small businesses, freeze hiring and ultimately leave young people and job seekers paying the price for Labor capitulating to union paymasters.”
The government had suffered a series of defeats during the bill’s difficult passage through the House of Lords.
In a bid to break the deadlock as we approach the Christmas holidays, the Government has abandoned its election promise to offer employees first-day protection against unfair dismissal and instead agreed to the six-month period of workplace protection demanded by colleagues.
However, as part of the settlement, a measure was introduced at the 11th hour to remove compensation limits for unfair dismissal; This has sparked a new debate, with the amount now less than 52 weeks’ pay, or £118,223.
Unite general secretary Sharon Graham said: “Finally the Employment Rights Bill has been passed. It now needs to be implemented without further dilution or delay.
“Labour needs to stop being embarrassed by these new laws for workers. The bill was already too watered down, especially the failure to ban fire, no rehire and zero hours contracts. This will come as a surprise to workers.”
“The UK has the weakest employment rights in Europe and the new law will hardly level the playing field. Ministers must fully introduce the ERB’s measures without further disruption.”
