Employment Rights Bill: Division 22 - 21 Oct 2024 (Rejected)

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Legislation Summary

Significant changes to workers' rights, including the removal of the qualifying period for unfair dismissal claims.

Legislation Key Points

The Employment Rights Bill has been criticized for being rushed and lacking comprehensive consultation and impact assessments, particularly regarding its potential effects on small businesses and the Employment Tribunal system.

  • The Bill proposes significant changes to workers' rights, including the removal of the qualifying period for unfair dismissal claims, which may discourage employers from hiring new staff.
  • Concerns have been raised about the potential increase in strikes and workplace intimidation resulting from repealing certain trade union laws.
  • Supporters of the Bill argue that it could lay the foundation for future reforms, while opponents warn it may lead to increased costs for businesses and the risk of reduced worker benefits.
Raw Legislation Text

“the impact on growth could”- “be positive”, “would be small in magnitude.” “this House notes the balanced reforms made by previous Conservative governments to improve workers’ rights, including the National Living Wage, the prohibition of the use of exclusivity clauses or terms in zero hours contracts and the introduction of shared parental leave and pay, and declines to give a Second Reading to the Employment Rights Bill because it has been rushed into Parliament without full consultation to meet an arbitrary 100-day deadline and Monday 21 October 2024 Business Today: Chamber 19 has not been accompanied by an Impact Assessment considering the impact on the Employment Tribunal, especially as a result of the removal of the qualifying period for the right to claim unfair dismissal or the impact of the extra red tape on SMEs or the impact of establishing the Fair Work Agency; because the repeal of trade union laws will lead to more strikes and intimidation in the workplace, and will force taxpayers to foot the bill for inflation-busting pay hikes without public service reform; because the Bill undermines choice for workers about whether they want to fund political campaigning and forces firms and public bodies to bankroll more trade union facility time, including trade union diversity jobs; and because the Bill is contrary to the Government’s stated goals of improving productivity and economic growth and will increase costs for businesses and consumers.” “inevitably deter small employers from taking on new people”, “rushed job, clumsy, chaotic and poorly planned” “excessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation, upsets the proper balance between Parliament and the executive.” “work doesn’t pay if there’s no work”. “This legislation is a rushed job, clumsy, chaotic and poorly planned.” “the ones most likely to give opportunities to people furthest from the labour market, such as those returning after long-term health issues or caring responsibilities.” “Plans to give day one unfair dismissal rights to new employees will add to the risks associated with hiring people.” “the Employment Rights Bill isn’t the terminus. It’s the first stop. This can be the foundations on which we can build.” “will inevitably deter small employers from taking on new people” “to make Britain the best place to start and grow a business.” “The proposed new rights to a tribunal access from day one will inevitably lead to more settlement agreements to avoid a lengthy and costly tribunal process, placing more burdens on businesses.” “We of course support the Bill, but it falls short of what unpaid carers really need, which is paid carer’s leave. Under the proposals set out in our new deal for working people, the next Labour Government will legislate to introduce just that”.-[Official Report, 21 October 2022; Vol. 720, c. 1004.] “Personal life: He has a dog called Scooby.” “The government deserves credit for its willingness to engage with businesses and unions”. “rushed…clumsy, chaotic and poorly planned.” “Where businesses cannot absorb the increase in labour costs, they may look to pass them onto workers by reducing expenditures that benefit workers (e.g. staff training) or scaling back future improvements to T&CS (e.g. wage growth).” “I wanted to tell you how the New Deal for Working People will make a difference to me. I am employed in social work. My wages have not increased in line with inflation, meaning a loss of income. I do a difficult, stressful job in public service and all staff are at breaking point. From banning exploitative zero hour contracts to ensuring we have access to workers’ rights from day one-thank you for supporting a New Deal for Working People.”

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