UK businesses are bracing for renewed uncertainty as the Employment Rights Bill (ERB) returns to the House of Lords today. New research suggests that trust in a quick fix is almost non-existent.
A survey by compliance firm VinciWorks has found that just 3 percent of senior HR, compliance and business leaders believe the Lords will drop their opposition to key provisions of the legislation, including workers’ rights from day one and proposed changes to union rules.
The survey, which collected responses from 190 HR and compliance professionals, CEOs and business consultants, shows deep concern across UK industry. One in five respondents believe the legislation will fail completely, while 12 percent believe the government will resort to the Parliament Act, a move that would delay implementation until at least next year. Another 40 percent expect a compromise between the Lords and Commons – an outcome that ministers have so far disagreed with.
Nick Henderson-Mayo, head of compliance at VinciWorks, warned that the government’s stance risks prolonging instability for employers. He said ministers were “backing themselves into a corner” by refusing to negotiate despite the sweeping scope of the reforms. “The Labor Rights Act is the biggest change to workers’ rights in decades,” he noted. “Employers deserve to have their voice heard on proposals that will be very difficult to implement.”
Opposition in the upper house has focused primarily on the government’s efforts to extend unfair dismissal protections to the first day of employment, along with sweeping provisions for zero-hours workers and rules on political donations to unions. With a large majority expected to vote against the government again, many employers say they remain stuck in regulatory limbo.
VinciWorks’ findings show widespread concern about the bill’s far-reaching impact. Nearly 60 percent of respondents believe they need to strengthen their workplace sexual harassment policies, while two-thirds say they need to introduce new staff training programs to prepare for the ERB’s sweeping changes. But many say they cannot move forward with these plans while the dispute over unfair dismissal rules continues.
Henderson-Mayo pointed out that even previous Labor governments had accepted the need for a waiting period for unfair dismissals. “The Employment Protection Act of 1975 reduced the waiting period to six months. Today it is two years. Obviously there is room for compromise and gives companies time to prepare.”
The government has already launched several consultations on elements of the bill, including proposals on the rights of pregnant women and new mothers, as well as requirements for menopause action plans. But with nearly one in five business leaders believing the bill could fail completely, many fear they are spending time and money preparing reforms that could ultimately be abandoned.
“Employees and managers want trust in the employment system,” Henderson-Mayo added. “If government and parliament cannot compromise, the likelihood that the rules will be rewritten again in a few years increases. The ERB is important – but perhaps it is time for a grown-up government.”
