Angela Rayner, the Deputy Prime Minister, is in disagreement with Business Secretary Jonathan Reynolds over proposals to extend full employment rights to workers from their first day on the job.
This debate is intensifying amid growing concern from business leaders.
According to sources, the crux of the disagreement between Rayner and Reynolds lies in the length of probation periods under the new reforms. Rayner is pushing for workers to receive full rights after a brief probation, including the ability to challenge dismissals in employment tribunals. Currently, workers must be employed for two years to qualify for such protections. However, Reynolds prefers a middle-ground approach, advocating for a reduced probation period of nine months rather than a full removal of the probationary phase.
One Whitehall source described the discussions as “intense,” adding that Rayner’s push for immediate rights is facing significant resistance from Reynolds, who believes a longer probationary period is essential for businesses. “Day one rights are proving to be very contentious,” the source said.
Business Concerns
Business leaders have raised concerns that these reforms could deter companies from hiring new staff, fearing that the removal or significant reduction of probation periods would lead to a surge in unfair dismissal claims. They argue that probation periods are crucial for assessing new hires’ suitability.
To address these concerns, Rayner and Reynolds have been meeting with business executives, union leaders, and industry lobbyists. The goal is to explain the details of the proposed changes and ensure that businesses understand the rationale behind them.
Labour’s Manifesto and Reforms
Labour’s manifesto pledged to overhaul workers’ rights, promising “basic individual rights from day one,” including protection from unfair dismissal, parental leave, and sick pay. The broader package includes other significant measures, such as ending zero-hour contracts, banning “fire and rehire” practices, raising the minimum wage, and increasing flexibility in the workplace by allowing workers to request a four-day workweek.
Despite the joint effort, businesses remain uneasy. A survey by the Confederation of British Industry (CBI) showed that 62 percent of respondents felt the UK was becoming a less attractive place for investment, with the proposed employment reforms cited as a key reason. An economic confidence index by the Institute of Directors (IoD) also saw a sharp drop, which it attributed in part to uncertainties surrounding the looming workers’ rights reforms.
A Time Crunch
The Labour government has set a self-imposed 100-day deadline to implement these employment reforms, which means that Rayner and Reynolds have only two weeks to resolve their differences before the draft employment rights bill is presented next month. With time running out, it is unclear whether a compromise will be reached in time to meet the deadline.
A Labour source emphasised that while the disagreement between Rayner and Reynolds has been heated, it is not personal. The two are known to be close allies, representing neighbouring constituencies, and have worked together to engage with business leaders about the proposed changes.
However, some in Whitehall worry that vague or incomplete proposals will only fuel uncertainty. “Everyone is trying to find a solution that allows for clear consultation,” said one government insider.
Future of Workers’ Rights
Despite the internal disagreements, Labour is pushing ahead with its plans to reform employment laws, aimed at creating more secure jobs and boosting workers’ rights. A government spokesperson confirmed that their “priority is economic growth,” and that the reforms are intended to balance improving workers’ rights while maintaining the interests of businesses.
As Labour approaches its 100-day deadline, the next few weeks will be crucial in determining the final shape of the employment rights bill. With both business leaders and unions watching closely, the outcome of these negotiations will have far-reaching implications for the UK job market.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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