Deputy Prime Minister Angela Rayner is at odds with Business Secretary Jonathan Reynolds over plans to grant workers full employment rights from day one of a job, as concerns grow among businesses about the impact of the proposed reforms.
The disagreement centres on how probation periods should function under the new system, which is part of Labour’s broader push to overhaul workers’ rights within the first 100 days of government.
Rayner is pushing for staff to receive full employment rights, including the ability to bring unfair dismissal claims to employment tribunals, after a short probation period. Currently, employees must work for at least two years to qualify for such protections. In contrast, Reynolds favours a longer probation period of up to nine months, arguing it provides a reasonable balance between employee rights and business needs.
A Whitehall source described the debate as “intense,” noting that reaching an agreement within the next fortnight remains uncertain. “Angela is less keen on a longer probation period, Reynolds thinks nine months is reasonable. It’s unclear if an agreement will be reached,” the source said.
The discussions are taking place against a backdrop of mounting discontent among business leaders, who argue that removing or drastically shortening probation periods could deter hiring and stifle growth. Businesses view probation as essential for assessing new hires, and there are fears that the changes could lead to a surge in costly and time-consuming unfair dismissal claims.
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