Angela Rayner, Deputy Prime Minister, will give another 9 million British workers the right to sue their employers for unfair dismissal from the first day of employment, as part of a major overhaul of workers’ rights.
Currently, employees must have been employed by a company for two years before they qualify for these powers.
Business leaders have criticized the reform package, calling it “chaotic” and warning it would hurt companies’ willingness to hire new recruits. The Federation of Small Businesses and the Recruitment and Employment Federation have expressed concerns about possible economic inactivity and reduced business confidence.
The reforms, described as the “biggest upgrade” to workers’ rights in a generation, include measures such as banning fire and rehiring practices and ending exploitative zero-hours contracts. However, elements of the package have been watered down, including the extension of the recommended probationary period for new hires.
Labour’s new measures aim to boost productivity by modernizing workplaces, with Rayner saying: “We are replacing a race to the bottom with a race to the top.” However, critics claim the changes will allow unions to hold onto companies to ransom and suppress investment, with shadow business minister Kevin Hollinrake warning that Labour’s policies could have a negative impact on business confidence.
The new employment rights law is expected to be introduced this week, with further reforms such as access to flexible working and improved parental leave also on the agenda.