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The government has opted to drop its key policy from the employee protections bill, replacing the right to protection from unfair dismissal from the start of work with a 180-day minimum period.

Corporate Worries Prompt Reversal

The decision follows the industry minister told companies at a key gathering that he would listen to concerns about the impact of the policy shift on employment. A worker organization representative remarked: “They’ve capitulated and there could be further developments.”

Mutual Understanding Achieved

The worker federation announced it was prepared to accept the mutual agreement, after prolonged discussions. “The top concern now is to get these rights – like first-day illness compensation – on the official legislation so that employees can start benefiting from them from next April,” its head official stated.

A labor insider added that there was a view that the half-year qualifying period was more practical than the more loosely defined 270-day trial phase, which will now be eliminated.

Legislative Backlash

However, parliamentarians are expected to be alarmed by what is a direct breach of the government’s manifesto, which had committed to “day one” security against wrongful termination.

The new industry minister has taken over from the earlier office holder, who had guided the bill with the deputy prime minister.

On Monday, the minister vowed to ensuring companies would not “suffer” as a consequence of the changes, which included a ban on flexible work agreements and day-one protections for employees against unfair dismissal.

“I will not allow it to become one-sided, [you] benefit one at the expense of the other, the other is disadvantaged … This has to be implemented properly,” he said.

Legislative Progress

A worker representative indicated that the changes had been accepted to enable the act to move more quickly through the second house, which had significantly delayed the act. It will mean the qualifying period for wrongful termination being shortened from two years to half a year.

The act had originally promised that timeframe would be abolished entirely and the ministry had proposed a less stringent evaluation term that companies could use in its place, limited in law to nine months. That will now be removed and the law will make it not possible for an employee to claim unfair dismissal if they have been in post for fewer than 180 days.

Worker Agreements

Labor organizations insisted they had won concessions, including on financial aspects, but the move is anticipated to irritate leftwing MPs who regarded the worker protections legislation as one of their key offerings.

The act has been amended repeatedly by rival members in the upper house to satisfy key business requests. The secretary had stated he would do “what it takes” to overcome procedural obstacles to the act because of the Lords amendments, before then reviewing its application.

“The industry viewpoint, the opinions of workers who work in business, will be heard when we examine the specifics of implementing those essential elements of the employee safeguards act. And yes, I’m talking about zero hours contracts and immediate protections,” he commented.

Rival Response

The opposition leader described it “one more shameful backtrack”.

“The administration talk about stability, but rule disorderly. No firm can prepare, allocate resources or recruit with this amount of instability affecting them.”

She said the act still contained provisions that would “harm companies and be harmful to economic expansion, and the rivals will contest every single one. If the government won’t abolish the worst elements of this awful bill, we will. The state cannot foster growth with more and more bureaucracy.”

Ministry Announcement

The responsible agency stated the conclusion was the product of a compromise process. “The ministry was happy to support these discussions and to set an example the advantages of working together, and stays devoted to keep discussing with worker groups, industry and companies to improve employment conditions, support businesses and, vitally, realize economic growth and good job creation,” it said in a statement.