Fashion
UK government, unions & businesses agree on Employment Rights Bill
A central breakthrough was consensus on reducing the unfair dismissal qualifying period from 24 months to six months, while retaining day-one protection against discrimination and automatically unfair dismissal, UK’s Department for Business and Trade said in a release.
The UK government will advance the Employment Rights Bill after unions and business groups agreed to cut the unfair dismissal qualifying period to six months.
The deal preserves April 2026 rollout of day-one sick pay and paternity leave and the Fair Work Agency.
Business groups welcomed the agreement but urged careful handling of issues such as guaranteed hours.
Ministers stressed this approach balances stronger worker protections with clarity for employers. The Government will also lift the compensation cap and ensure that any future changes to the qualifying period can only be made through primary legislation.
Business groups and unions agreed the Bill could now progress after the government committed to table the necessary amendments and ensure a full, transparent consultation process for upcoming secondary legislation. Ministers said this will keep implementation aligned with their timetable and manifesto pledge to ‘Make Work Pay,’ avoiding significant delays that would affect millions of workers and hinder business preparation.
The government emphasised its intention to continue detailed engagement with both sides—particularly to support small businesses—throughout the implementation phase.
Six major business organisations, including the British Chambers of Commerce (BCC), CBI and Federation of Small Businesses, issued a joint statement welcoming the negotiated outcome. They said firms would be relieved that the government had adopted a qualifying period that is simple, meaningful, and understood, giving employers confidence to hire while protecting workers.
“This change addresses the key problem that must be sorted in primary legislation. It shows that dialogue works and is a model for how to consider the important questions that need answering in regulations before new rules come into force,” BCC along with the other organisations said in a joint release.
However, they cautioned that concerns remain over powers in the Bill related to guaranteed hours contracts, rules for seasonal and temporary workers, and industrial action thresholds.
“We remain committed to working with government and unions to dealing with this in the necessary secondary legislation to implement the Bill. We must ensure that it supports opportunity for workers while avoiding damage to economic growth. That also means agreeing guidance and support for businesses to understand and effectively implement the many changes, alongside sufficient resources for the Fair Work Agency and tribunal system,” the organisations added.
Fibre2Fashion News Desk (HU)