Labour minister Justin Madders has responded to concerns from employers regarding the government's proposed move to day one rights under the workers' rights bill, dismissing them as "misplaced fear".
Speaking to City AM, Madders emphasised that companies understand the value in "giving people more certainty at work" and contended that the proposed workers' rights legislation would help businesses by encouraging them to "treat their workforce well", which is ultimately beneficial for business, as reported by City AM.
During his visit to a Richer Sounds outlet in Holborn, the employment minister advocated for the bill: "We think I.T. will be a real step forward in sending the message out that if you treat your staff well, you’ll have better recruitment, better retention, better productivity and overall, a better, successful business."
This development follows as the long-anticipated overhaul of workplace law is poised to re-enter the House of Commons. City AM has reported apprehensions among small business owners about potential revisions to unfair dismissal regulations and the likelihood of an uptick in employment tribunals.
Critics have aired worries over the effect of higher wage costs on companies and the strain of increased regulation on the broader economy.
Addressing these anxieties, Madders reiterated his stance to businesses fearing the changes: "I think there is a lot of misplaced fear about the move to day one rights."
"I would say the vast majority of businesses we talk to don’t support the idea that you can be working somewhere for two years and then be sacked arbitrarily, without any good reason, without any legal recourse."
He further commented, "I think they recognize that actually giving people more certainty at work is a really important thing. " He acknowledged potential issues, stating, "But there is also, of course, a concern that sometimes people come in and there isn’t a good fit, and sometimes things don’t work out for perfectly legitimate reasons."
In response to these concerns, he revealed, "We have listened and we have introduced this concept of the statutory probation period."
He concluded by saying, "It’s about getting the balance right between giving people more certainty at work... but also giving businesses the opportunity to work with people who need that little bit more support to stay on in the business."
Julie Abraham, chief executive of Richer Sounds, a British home entertainment retailer which saw owner Julian Richer sell 60 per cent of his shares to an employee ownership trust, emphasised the company's commitment to exceeding minimum standards. She stated, "I know we’re better on sickness pay already, and maternity and paternity leave... but it does feel like a very uneven playing field."
She expressed her hopes for industry-wide improvement, saying, "What I’d really like to see is other businesses come up to our level, and the more people that come up to our level, we’re then going to have to fight and take it up another level to stay ahead of the game with regards to recruitment."
Shadow business secretary Andrew Griffith has highlighted concerns regarding the government's proposed reforms, citing the government’s own impact assessment which indicates that the measures are "expected to cost businesses at least £5bn". He also cautioned about the potential for "devastating job losses."
The much-anticipated legislation is set to come back to the Commons for the report stage and its third reading on a future date, providing MPs with an opportunity to debate the bill and propose amendments.
