Jessica O'ConnorEmployers are bracing for uncertainty as the Employment Rights Bill (ERB) returns to the House of Lords today, with new research pointing to minimal confidence that peers will soften their stance on key reforms.
A survey of 190 senior HR, compliance, legal and executive leaders by VinciWorks found that only 3% expect the Lords to back down over disputed measures such as day-one employment rights and changes to trade union rules.
One in five (21%) believe the legislation will fail altogether, while 12% anticipate the government resorting to the Parliament Act, potentially delaying the ERB until next year.
A further 40% predict a compromise, despite ministers declining to engage in negotiations.
Nick Henderson-Mayo, head of compliance at VinciWorks, said: “The government is backing itself into a corner by refusing to negotiate.
“The Employment Rights Bill is the biggest change to workers’ rights in decades, and employers deserve to have their voices heard over certain proposals which will be very difficult to implement.”
The most contentious provisions include extending unfair dismissal protection to the first day of employment, new rights for zero-hours staff and rules on political donations to trade unions.
With peers expected to reject these measures again, employers remain in limbo over future obligations.
The survey also found that 59% of businesses expect to do more to meet the bill’s sexual harassment requirements, while 66% are considering new staff training to prepare for the wide-ranging reforms.
Many say they cannot proceed while uncertainty over day-one unfair dismissal rights continues.
Henderson-Mayo added: “Even the Labour government of Harold Wilson in the 1970s understood that abolishing the qualifying period for unfair dismissal is unworkable.
“The Employment Protection Act of 1975 reduced it to six months. Today it’s two years. Clearly, there is space to compromise and allow businesses time to prepare.”
The Government has begun consultations on several components of the bill, including protections for pregnant employees and proposed menopause action plans.
But with a fifth of leaders predicting the ERB will collapse, some fear investing in preparations that may never be required.
Henderson-Mayo concluded: “Staff and bosses want to have confidence in the employment system, but if the government and parliament cannot compromise, it only increases the likelihood of the rules being torn up again in a few years.
“The ERB is important. Perhaps it’s time for some grown-up government.”
