The resignation of Angela Rayner last week has thrown further uncertainty over the forthcoming Workers’ Rights Bill; something we have been discussing for a while now.

This flagship piece of legislation has for months been the subject of heated debate, dividing opinion between those who see it as a vital for safeguarding employee rights versus those who fear it risks undermining businesses and, by extension, the wider UK economy.

Now, with the Labour Party preparing to appoint a new deputy leader, we are left wondering what might happen next.

We don’t have official statistics, but anecdotally, it would appear that most businesses in the UK are not in favour of the bill in its current form. Regular readers of this blog will know that there are several elements which we believe could be particularly damaging for employers.

The ongoing uncertainty of what will and will not become law, coupled with the increases in National Insurance contributions earlier this year, seems already to be having an effect. We’ve seen reductions in UK vacancies alongside rising unemployment over recent months, both indicators of a labour market under strain.

While we agree that the employment relationship should be a two-way street, fair to both employer and employee, some elements of the bill, as we have discussed in earlier blogs, appear weighted too heavily in favour of employees.

For example, proposals to introduce day one rights for unfair dismissal claims and sick pay from the very first day of absence would significantly increase employer costs.

Indeed, it seems we never hear a member of the Government utter the words “zero hours contracts” without prefixing the phrase with word “exploitative”; as if to dismiss entirely their value to both businesses and workers who seek flexibility.

Evidently, there are members of the Government who recognise that the bill, in its current form, could go too far and risk damaging the fragile economy. Since Angela Rayner’s departure, commentators have openly discussed the likelihood of the legislation being “watered down.” Indeed, Justine Madders, one of the key architects of the bill and Employment Rights Minister, was quietly dismissed by Keir Starmer at the weekend, a strong signal that compromises may be ahead.

Meanwhile, the leadership race to replace Angela Rayner as deputy leader could prove decisive. Education Secretary Bridget Phillipson is considered one of the frontrunners, and her rousing speech at the Trades Union Congress this week made clear her commitment to enforcing the bill as it currently stands, should she win. This pledge appears to be a direct attempt to secure the backing of trade unions, whose influence in the deputy leadership vote is significant.

With a Government so on the hook to the unions, the timing of union activity is notable. London Underground staff strikes this week have caused major disruption in the capital, while junior doctors remain locked in dispute over pay and working conditions. For a government already grappling with fragile economic conditions, trying to push through divisive legislation while also appeasing unions looks like a delicate balancing act. The risk is that, in trying to satisfy all sides, the Government pleases no one. Turmoil seems almost inevitable.

Regardless of what the final version of the Workers’ Rights Bill looks like, employers must be ready to adapt quickly. Whilst there may be some phasing in of key legislative points, you don’t want to be the one that sets the case law because you ended up in tribunal. Managers should be prepared to understand, interpret and implement any new rules correctly or risk leave companies exposed to unfair dismissal claims, employment tribunals, and reputational damage.

At HR Champions, we strongly recommend ensuring your managers are prepared and confident to navigate whatever form the legislation eventually takes. Our ILM Leadership and Management training courses are designed to equip supervisors, managers, and senior leaders with the skills and knowledge needed to manage effectively in today’s challenging business landscape.

More importantly, our training ensures that your leadership team is forearmed with the ability to interpret new legislation accurately and apply it in practice, reducing your risk and strengthening your resilience.
A modest investment in training today could prevent costly mistakes tomorrow and position your business to weather the potential coming storm. Contact HR Champions Ltd now to explore our tailored training solutions and ensure your management team is ready for whatever lies ahead. Call us on 01452 331331, or complete the contact form.