Concerns over the move to day one rights under the government’s workers rights bill represent “misplaced fear”, a Labour minister has insisted in the face of criticism from employers.
Justin Madders, employment minister, told City AM firms recognise the benefits of “giving people more certainty at work” as he argued the package of workers rights legislation would aid firms in “treating their workforce well” and “doing so is good for business”.
Speaking on a visit to a branch of Richer Sounds, in Holborn, Madders put forward the case for the bill, stating: “We think [it] 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.”
It comes as the government’s long awaited overhaul of workplace law is set to return to the House of Commons, with small business owners warning City AM of their concerns over proposed changes to unfair dismissal rules and the prospect of more employment tribunals.
Critics of the package of measures have warned of the impact of an increased wage bill on firms, and the burden of increased regulation on the wider economy.
Asked for his response to firms who are worried, Madders said: “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 added: “I think they recognize that actually giving people more certainty at work is a really important thing.
“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.
“We have listened and we have introduced this concept of the statutory probation period.
“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.”
Richer Sounds chief executive Julie Abraham stressed that the firm – a British home entertainment retailer, which saw owner Julian Richer sell 60 per cent of his shares to an employee ownership trust – aims to stay ahead of “the government minimum”.
She said: “I know we’re better on sickness pay already, and maternity and paternity leave… but it does feel like a very uneven playing field.
“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 pointed out that the government’s own impact assessment of the reforms shows the measures are “expected to cost businesses at least £5bn” and he warned of “devastating job losses”.
The long-awaited legislation is expected to return to the Commons for report stage and its third reading at a later date, which will see MPs debate the bill and suggest amendments.