Change to Employment Rights Bill a ‘step forward’ says Chamber

An amendment to the government’s Employment Rights Bill, changing the right to claim unfair dismissal after one day to a period of six months - a policy set to commence in 2027 - has been welcomed by East Midlands Chamber.

East Midlands Chamber joined the British Chambers of Commerce earlier in the year in calling for parts of the Bill to be reconsidered and sent a letter to East Midlands MPs outlining concerns from the business community, following nationwide research on the impact that policies in the Bill could have.

East Midlands Chamber Chief Executive Scott Knowles said: “Unchanged, the measures proposed in this Bill present a barrier to business growth and that’s why, after we wrote to MPs on behalf of our members earlier this year to clearly outline their concerns, I welcome the decision to extend the dismissal protection threshold proposed in the Bill to six months.

“Flexibility is an essential ingredient for business and disruption to the way firms operate, additional paperwork and associated costs is not conducive to growth, so it’s important that the government continues to address the concerns we raised.

“While this amendment is a step forward, the Bill, in its current form, will still add significant pressure to firms already dealing with the impact of rising staff costs from factors like soaring inflation and higher National Insurance contributions that came into effect earlier this year. I urge the government to prioritise greater consultation with business before the Bill is given Royal Assent.

“The Chamber stands ready to support firms in the East Midlands and can give useful advice on preparation for the Employment Rights Bill and what its implementation could mean for them.”