Business Groups Urge Tory Peers to Stop Blocking Labour Workers' Rights Bill
Six major employer groups, including the CBI, British Chambers of Commerce, CIPD, Federation of Small Businesses, Recruitment and Employment Confederation, and Small Business Britain, have called on Conservative peers in the House of Lords to cease blocking Labour's workers' rights bill. They warned that continued opposition could jeopardize a compromise reached with unions and employers.
The groups sent a letter to business secretary Peter Kyle highlighting concerns over amendments put forward by Tory peers, especially around lifting the cap on unfair-dismissal compensation. This cap's removal has been identified by The CityUK as a risk that could lead to unlimited payouts for high earners, potentially deterring investment and hiring.
Labour previously removed day-one unfair dismissal protection and ministers introduced a six-month qualifying period as part of a deal with most trade unions. Despite this, the bill has been blocked in the Lords for the fourth time due to these Tory amendments.
The bill is expected to pass in the Commons and then return to the House of Lords. Further amendments from peers would result in additional rounds of negotiations. Peter Kyle pledged that after the bill's passage, there would be consultations and efforts to implement the agreed package through secondary legislation.
Both Labour and business leaders acknowledge ongoing concerns regarding the financial cap, with some ministers and Labour figures stating that compromises were necessary to achieve progress on workers' rights reform.
