Six business groups have said the Employment Rights Bill should now be passed after they reached a compromise on day one rights for unfair dismissal.
In a letter to business secretary Peter Kyle, the organisations said “we believe that
now is the time for Parliament to pass the Bill”.
The letter follows discussions between the groups, trade unions and ministers which led to the government dropping its election manifesto commitment to provide all workers with the right to claim unfair dismissal from their first day in a job. It will now apply after six months.
Although the groups called for the Bill to be passed, they said they are still not happy with the removal of the 52-week cap on claims for compensation for unfair dismissal “as this change effectively removes the cap for all but the highest-paid workers”.
The letter argued that the “proposed changes will impact how the compensation system
works and will exacerbate the challenges facing the tribunal system. The groups said they will “engage constructively” with the government’s plan to undertake a review into the Dispute Resolution System.
The groups added that “businesses still have concerns about several other powers in the Bill, but we are confident that workable agreements can be found in due course under a tripartite model”.
Responding in his own letter, Kyle said “the strategic compromises, made by both sides of industry, demonstrate that, with a spirit of consensus and cooperation, we can build a brand-new framework for industrial relations in our country”.
On the concerns businesses still have, he added:
“I want the good will and good faith shown during these recent rounds of negotiations to continue and for us to make further progress in partnership with both business and the trade unions.
“I am, therefore, very happy to confirm that we will continue this approach to ensure that implementation can be harmonious, sensible and sensitive to the needs and perspectives of both sides of industry.”
The Bill has been passing back and forth between the Lords and Commons for several months, in the process known as ‘ping pong’.
Last week, peers supported a Conservative proposal to force a review of the government’s plan to abolish the compensation cap for unfair dismissal cases.
The groups signing the letter are British Chambers of Commerce, Chartered Institute of Personnel and Development, Confederation of British Industry, Federation of Small Businesses, Recruitment and Employment Confederation, Small Business Britain.