The CIPD is calling for the government to engage in meaningful consultation to avoid negative outcomes from the Employment Rights Bill.
The representative body for HR and people development has warned that without it, there is a risk of unintended consequences for both workers and employers.
It is urging the government to holistically examine the effect of the legal reforms ahead of its appearance at the Business and Trade Select Committee’s evidence session today (17 December).
The CIPD has highlighted fears that some major legislative changes are moving forward without full or proper consultation.
For example, it believes plans to end the single establishment rule for collective redundancies will have far-reaching effects for larger employers and will probably mean many have to continually engage in collective consultation over redundancies.
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The CIPD also suggested that making it automatically unfair to dismiss someone who refuses to agree to a variation in their employment terms and conditions could mean firms facing severe financial difficulties are forced to make redundancies.
Finally, it highlighted the government was only consulting on how new rights for zero- and low-hours workers should apply to agency workers, rather than whether they should apply at all.
Ben Willmott, head of public policy at the CIPD, said: “The Employment Rights Bill will have major implications for all employers in Britain. The CIPD supports many of the aims of this Bill and wants to see genuine consultation across all the reforms being put forward. That may mean there will be a need for potential changes and refinements to policy on certain measures.”
Urging the government to consider the effects of the reforms holistically rather than as individual legislative changes, he thinks there also needs to be a firm focus on providing information, advice and guidance to help organisations to be ready for any legal changes – particularly SMEs.
He said: “Many micro and small firms won’t have access to dedicated HR support and will be at most risk of non-compliance.”
Willmott insisted there are areas that need “detailed discussion” because of their complexity and potential impact on businesses.
He added: “Meaningful consultation with employers and business bodies will ensure the government is upholding its four principles of modern industrial relations – collaboration, proportionality, accountability and balancing the interests of workers, business and the wider public.”
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