🔗 Share this article

The government has opted to drop its central proposal from the workers’ rights bill, replacing the safeguard from wrongful termination from the start of service with a half-year threshold.

Business Concerns Lead to Reversal

The step follows the corporate affairs head addressed firms at a key gathering that he would heed concerns about the consequences of the policy shift on employment. A worker organization source commented: “They’ve capitulated and there may be more developments.”

Compromise Agreement Achieved

The worker federation announced it was ready to endorse the compromise arrangement, after extended discussions. “The primary focus now is to secure these protections – like day one sick pay – on the legal record so that working people can start gaining from them from April of next year,” its head official stated.

A union source noted that there was a view that the half-year qualifying period was more workable than the vaguely outlined 270-day trial phase, which will now be eliminated.

Legislative Response

However, parliamentarians are expected to be concerned by what is a clear violation of the administration’s manifesto, which had committed to “day one” safeguards against unfair dismissal.

The new industry minister has replaced the former incumbent, who had overseen the act with the deputy prime minister.

On the start of the week, the official committed to ensuring firms would not “suffer” as a outcome of the changes, which involved a prohibition on zero-hour contracts and first-day rights for staff against unfair dismissal.

“I will not allow it to become zero-sum, [you] favor one group over another, the other loses … This has to be got right,” he said.

Parliamentary Advance

A worker representative indicated that the amendments had been agreed to allow the legislation to move more quickly through the upper chamber, which had significantly delayed the bill. It will mean the eligibility term for wrongful termination being shortened from 24 months to six months.

The legislation had initially committed that period would be abolished entirely and the government had suggested a less stringent probation period that firms could use instead, capped by legislation to nine months. That will now be removed and the law will make it impossible for an worker to claim wrongful termination if they have been in position for fewer than 180 days.

Union Concessions

Unions insisted they had achieved agreements, including on costs, but the move is expected to upset leftwing MPs who considered the worker protections legislation as one of their key offerings.

The bill has been amended repeatedly by other party members in the second chamber to accommodate primary industry requests. The secretary had declared he would do “what it takes” to resolve procedural obstacles to the bill because of the upper house changes, before then discussing its implementation.

“The industry viewpoint, the views of employees who work in business, will be considered when we delve into the details of applying those crucial components of the employee safeguards act. And yes, I’m talking about zero hours contracts and first-day entitlements,” he said.

Opposition Response

The rival party head described it “one more shameful backtrack”.

“The government talk about stability, but manage unpredictably. No firm can plan, allocate resources or employ with this amount of instability looming overhead.”

She said the bill still contained provisions that would “harm companies and be harmful to prosperity, and the opposition will contest every single one. If the government won’t abolish the worst elements of this problematic act, we will. The state cannot foster growth with increasing red tape.”

Official Comment

The relevant department announced the outcome was the product of a negotiation procedure. “The ministry was pleased to facilitate these discussions and to set an example the merits of working together, and remains committed to continue engaging with labor organizations, corporate and companies to improve employment conditions, assist companies and, vitally, realize economic growth and good job creation,” it stated in a announcement.