Angela Rayner’s proposed employment rights reform aims to grant 9 million UK workers the right to sue their employers for unfair dismissal from their first day of employment.
- Currently, employees must be with a company for two years to qualify for such rights, making this a significant shift in employment law.
- Business leaders have criticised the proposal, fearing it could lead to reduced hiring and economic inactivity.
- The plan also seeks to modernise workplaces by banning fire and rehire practices and ending zero-hours contracts, despite some elements being diluted.
- The proposed Employment Rights Bill is expected soon, with further reforms on flexible working and parental leave.
Angela Rayner’s ambitious employment rights reform seeks to fundamentally change the landscape of UK employment law by allowing 9 million workers to sue their employers for unfair dismissal from day one of their employment. This contrasts sharply with existing laws that require employees to be with a company for at least two years to qualify for such legal action.
The proposal has drawn criticism from business leaders who describe it as ‘chaotic,’ warning that it could dampen companies’ willingness to hire new employees. The Federation of Small Businesses and the Recruitment and Employment Confederation have expressed concerns about potential economic inactivity and decreased business confidence due to these changes.
Despite aiming to enhance workers’ rights, the reform plan has seen some elements diluted. Notably, while it seeks to ban fire and rehire practices and end exploitative zero-hours contracts, the recommendation to extend probationary periods remains. Rayner defends these measures as essential for driving productivity and modernising workplaces, stating, ‘We’re replacing a race to the bottom with a race to the top.’
Critics argue that such reforms could empower unions to hold businesses ransom and stifle investment. Shadow Business Secretary Kevin Hollinrake has voiced concerns that Labour’s policies may negatively impact business confidence, reflecting a broader apprehension within the business community.
In addition to unfair dismissal rights, the new Employment Rights Bill, which is slated for introduction soon, plans to address broader workplace reforms. These include improved access to flexible working arrangements and enhanced parental leave options, signalling a comprehensive approach to modernising worker protections.
The proposed employment rights reform by Angela Rayner represents a significant shift in UK labour law, sparking both strong support and notable criticism from various stakeholders.
