Business leaders have called on parliament to pass the Employment Rights Bill after it secured a compromise on day one rights for unfair dismissal.
Six industry groups have written a joint letter to business secretary Peter Kyle stating their support for parliamentarians to pass the bill.
The letter now puts pressure on crossbench peers and Tory representatives to back the bill after a ping-pong between the House of Lords and House of Commons ensued over months, in part due to businesses’ opposition to rights offered for staff to sue employers for unfair dismissal after the first day of work.
The government convened union bosses and business executives to strike a compromise on day one rights for unfair dismissal.
Businesses’ message of support came with a caveat as industry leaders said they were not satisfied with the full removal of a compensation cap for unfair dismissal claims but that they would work through consultations to “engage constructively” with the government on workers’ rights changes.
It is understood that the Tories will continue to oppose the bill’s progression, with last week’s joint opposition to the removal of the compensation cap with crossbench peers sending the bill back for another debate in the House of Commons on Monday.
Business chiefs said in their letter there were still “concerns” about other powers in the bill but said there could be “workable arrangements” put into place on issues around guaranteed-hours contracts, strike action and joining unions.
Signatories to the letter include representatives of the British Chambers of Commerce, the Confederation of British Industry, the Recruitment and Employment Confederation and the Federation of Small Businesses.
The other two groups to have signed the letter are the Chartered Institute of Personnel and Development and Small Business Britain.
Business chiefs ‘remain concerned’
Kyle wrote back to industry officials to praise their willingness to compromise on the terms of the bill and for the “good will and good faith” during negotiations to proceed after the bill receives royal assent.
“The strategic compromises, made by both sides of industry, demonstrate that, with a spirit of consensus and cooperation, we can build a brand-new framework for industrial relations in our country,” Kyle said.
“I look forward to working with the representatives of both business and trade unions to bring that about.”
Tory frontbencher Andrew Griffith, the shadow business secretary, said it was “clear” that firms did not support the scrapping of the £118,223 cash cap for unfair dismissal claims which “only benefits high earners and will lead to fewer jobs”.
“Every business leader I speak to remains concerned about the Unemployment Bill and its damaging impact on hiring,” Griffith said.
“Labour simply don’t understand business which is why every Labour government leaves unemployment higher than when they take office.”