Yesterday, Government announced a compromise on the ‘Day 1 Rights’ proposals of the Employment Rights Bill (ERB), with the introduction of a six-month qualifying period for unfair dismissal.

This means that the qualifying period for unfair dismissal will be reduced from 24 months to 6 months (day one protection against discrimination and automatically unfair grounds for dismissal remains in place). Government intends to ensure variations to unfair dismissal qualifying period can only be made via primary legislation and that the compensation cap will be lifted.  

This announcement addresses one of BRC members key priorities, providing retailers with much needed certainty and clarity to prepare whilst protecting a number of job opportunities, particularly to vulnerable groups and those returning/entering the labour market. This is a result of BRC’s regular engagement with Government and cross sectorial trade bodies who participated in the negotiations.

With this compromise, Government intends to address the issue of unfair dismissal, to ensure the Bill reaches Royal Assent to keep the timings in the roadmap. In its statement, Government recognises that businesses need time to prepare for upcoming changes.

This positive step is the most significant compromise achieved to date on the ERB and, together with concessions on fire and rehire and collective redundancies, ensure the legislation is workable for businesses while protecting jobs.

However, there are many aspects of the Bill that remain areas of significant concern such as guaranteed hours and trade union reforms. The BRC looks forward to continuing working with Government, other trade bodies and unions to ensure reforms are sensible, workable and protects jobs.

Media Response

Helen Dickinson, Chief Executive of the British Retail Consortium, said:

This is an important, practical step in creating an Employment Rights Bill that will protect employment opportunities as well as employees. We are pleased to see that Government has listened, and this is proof that meaningful engagement between businesses, trade unions and Government can lead to positive outcomes for everyone.

"We now need similar engagement on other areas of the Bill which are of significant concern. For example, Guaranteed Hours, where current proposals would make it harder for retailers to offer local, flexible, and part-time jobs.

"We now need similar engagement on other areas of the Bill which are of significant concern. For example, Guaranteed Hours, where current proposals would make it harder for retailers to offer local, flexible, and part-time jobs."