The Government’s flagship Workers’ Rights Bill has been up for scrutiny in the House of Lords last week and their Lordships have batted it back with a significant amendment concerning a standout policy regarding rights for claims against unfair dismissal. Cue red faces on the Government front benches.
The bill was sent up to the Lords with the proposal to grant employees protection against unfair dismissal from their very first day of employment, as opposed to the current two-year qualifying period. This has been one of the big promises from the Labour Government.
However, the Lords have suggested modifying this period to six months, with Lord Sharpe of Epsom stating “What the Government have failed to grasp is that, when businesses are given the flexibility to manage their workforce pragmatically, that is precisely when they are more likely to take on new staff. Hiring is always a risk. By heightening that risk and making it more difficult to manage, this Bill creates disincentives to hire…”
The amendment is one that many will see as a welcome injection of practicality and common sense into the legislation.
As pointed out by Lord Sharpe, the idea of employees being able to submit tribunal claims for unfair dismissal from day one of their employment understandably makes employers cautious. Businesses must be afforded a reasonable period to evaluate a new employee’s suitability, skills, and attitude towards their job. Allowing immediate claims potentially disincentivises employers from hiring new staff, wary of the heightened risk of litigation.
Indeed, critics have described the initial proposal as a potential "Slackers Charter," intended to protect employees from exploitation but inadvertently enabling exploitation in reverse. Although the intent behind Labour’s original proposal was commendable, in seeking to defend workers from unscrupulous employers, it risks inadvertently opening the door for unscrupulous employees to unfairly exploit diligent and honest employers.
The truth is that most employers and employees fundamentally want the same outcomes: reliable staff who arrive punctually, perform effectively, and contribute positively to the workplace culture. Employers have little incentive or desire to dismiss hardworking, committed employees. Extending day-one unfair dismissal rights to catch out a minority of bad employers is something of a sledgehammer to crack a nut scenario.
We can see similarities in the Government’s proposed renters' rights legislation. Most landlords have no wish to evict dependable tenants who pay rent promptly and maintain properties respectfully. Yet, recent legislative proposals seem predominantly aimed at protecting tenants who fail in their contractual obligations. Similarly, the Workers' Rights Bill, as initially proposed, seems geared towards protecting employees who might deliberately undermine their employment agreements, exploiting the goodwill of their employers.
It's almost becoming a issue of modern times that well intended legislation inadvertently emboldens an unscrupulous few who consciously seek to exploit the system. It’s made it critical for businesses these days to anticipate and mitigate these potential risks proactively, irrespective of what the final legislative outcome may be.
Employers must ensure they have robust employment processes and policies in place and managers across all levels who are adequately trained to implement them effectively. Employers should provide all management staff with at least a foundational understanding of Employment Law, including awareness of the legal and practical consequences of inappropriate actions or omissions.
You’ll know that at HR Champions, we specialise in delivering precisely this type of training. Our range of courses equips managers and leaders with practical knowledge regarding Employment Law, best practice, and effective employee management strategies. Business owners and senior managers should engage with us proactively to ensure their managerial teams are thoroughly prepared and equipped.
We are frequently reminded of the costly implications of Employment Law mistakes, not only financially but also in terms of employee morale and productivity. Investing modestly in training now can safeguard businesses against substantial future losses, and also deliver return on investment through greater productivity and reduced staff turnover.
Contact us today to discuss how our tailored training programmes can proactively protect your business. A small investment now can yield substantial savings and benefits in the long term, keeping your organisation safe against future legal risks while simultaneously elevating productivity. Call us on 01452 331331, or complete the contact form.
