The big quarrels over the workers' rights bill have barely started

"Well, the chances are slightly improved after six leading business groups published a temperature-lowering letter on Monday that said parliament, which in this instance means the blockers in the House of Lords, should get on with it. The employers, note, are still unhappy about the issue that triggered the most recent revolt by Conservative peers and a few cross-benchers: the removal of a cap on compensation claims for unfair dismissal."

"But they're more worried that further delays would jeopardise their negotiating victory last month, namely the government's U-turn on rights guaranteeing workers protection against unfair dismissal from day one of employment. A six-month qualifying period was adopted instead, with the blessing of the TUC, which was similarly motivated by trying to get the bill over the line quickly. The Lords is still free to object and add amendments again, of course."

"However, it would be a mistake to think that royal assent will mark the moment when the lobbying ends and everybody, employers and unions alike, can concentrate on implementation. In fact, the reverse is true. The extraordinary feature of the employment rights bill is that many critical details have been deliberately left to be resolved in secondary legislation. Take the introduction of guaranteed hours contracts. This flows from the laudable aim of tackling abuses of zero-hours contracts."

Six leading business groups urged the House of Lords to allow the employment rights bill to proceed, slightly increasing the likelihood of passage before Christmas. Employers remain unhappy about the removal of the unfair-dismissal compensation cap but fear further delay would undo a negotiated change replacing day-one protection with a six-month qualifying period, agreed with the TUC. The Lords can still amend or block the bill, but momentum favors approval. Many important operational details are deferred to secondary legislation, including how guaranteed hours contracts will define regular work, thresholds, reference periods and potential employer disincentives.

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