Deputy Prime Minister Angela Rayner is set to give an additional 9 million UK workers the right to sue their employers for unfair dismissal from day one of their jobs, as part of a sweeping reform of workers’ rights.
Currently, employees must remain with the company for two years before they qualify for these powers.
Business leaders have criticized the reform package as “chaotic” and warned that it risks damaging companies’ willingness to hire new staff. The Federation of Small Businesses and the Recruitment and Employment Confederation have expressed concerns about potential economic lethargy and low business confidence.
The reforms, described as the “biggest upgrade” to workers’ rights in a generation, include measures such as banning firing and rehiring practices and ending exploitative labor contracts. However, elements of the package have been relaxed, including extending the recommended probationary period for new employees.
Labour’s new measures aim to boost productivity by modernizing workplaces, with Rayner saying: “We are replacing a race to the bottom with a race to the top.” However, critics argue that the changes will enable unions to hold companies to ransom and stifle investment, with shadow business secretary Kevin Hollinrake warning that Labour’s policies could negatively impact business confidence.
A new Employment Rights Bill is expected to be introduced this week, with further reforms, such as access to flexible working and improving parental leave, also on the agenda.