Workers may have to wait 1,000 days for employment protections they were promised within 100 days of a Labour government taking office.
That was one of many contrasting responses from solicitors to the much-vaunted Employment Rights Bill, unveiled today. And while workers will have to wait at least two years before many of the measures take effect, fears have also been expressed about adding to the burden of overwhelmed employment tribunals.
Elizabeth Watt, employment Solicitor at Gloucester firm WSP Solicitors, said: ‘The legislation could be watered down as it will typically ping-pong through parliament. It could be years until we see [it] come into force with reports claiming, in some cases, employees will need to wait near 1000 days to enjoy the new rights.’
Day-one employment rights and an end to ‘exploitative’ zero hours contracts are among the bill’s headline measures. But in a late concession to business, employers will be still able to sack new recruits during a nine-month probationary period subject to a warning for poor performance. A six-month limit had been expected.
Watt also warned that the bill could ‘open the floodgates’ to more employment tribunal claims. The unresolved ET case backlog stood at 44,000 on 30 June, an 18% year-on rise.
John Hayes, managing partner of London firm Constantine Law, hailed the bill as a ‘fundamental rebalancing’ of employment rights, but added: ‘One can only wonder how the underfunded employment tribunal system will cope and how this will impact employers considering taking on new staff.’
Vicky Schollar, head of employment at south of England firm Gardner Leader, said: ‘There is a risk that employers will see an increase in claims for unfair dismissal, leading to more time and costs in dealing with them. The much anticipated changes to zero hours contracts and the ability of employers to fire and rehire employees is perhaps not as significant as originally anticipated.’
Jo Mackie, partner and employment lawyer at London-based international firm Burlingtons, said: ‘The bill does make provision to cancel the two-year probationary period for dismissal; however the government has committed to consultation. That does not make it a “day one” right. It looks like a fudge. The bill as proposed is good for business and, at best, so-so for workers’.
Andrew Czechowski, associate and employment lawyer at London firm Simkins, said: ‘The Labour government had previously indicated that it would outlaw zero-hour contracts and fire and rehire practices. However, the language used does not commit to an absolute prevention and therefore indicates a watering down of previous pledges.
‘The plan to allow unfair dismissal claims from day one could bring about a revolution in employment law. Even if more relaxed rules will apply in probationary periods, employers will be a lot more cautious about hiring staff.’
Transatlantic giant A&O Shearman’s global head of employment litigation, Sarah Henchoz, said: ‘Taken as a whole, it seems the government has landed on a compromise, to placate both business and unions, in proposing a statutory probation period that will allow employers to assess new hires, whilst retaining day one unfair dismissal rights for employees. The government has been treading a difficult path to balance enhanced rights for employees against the pleas from businesses for light touch regulation in these difficult economic times.’
