Over a hundred business form the facility services sector have expressed concern over the UK Government's proposed Employment Rights Bill by co-signing an open letter to Prime Minister Sir Keir Starmer, Deputy PM Angela Rayner, and Business and Trade Secretary Jonathan Reynolds.
Co-authored by Cleanology CEO Dominic Ponniah and Think FM managing director Malcolm Hill, the letter sets out strong opposition to key elements of the proposed legislation.
Both co-authors are convinced that the controversial Bill will have a devastating impact on the FM sector – and their grave concerns have been backed by some of the biggest names in facilities management.
Collectively these 128 signatory companies represent £7 billion in UK GDP and employ over 156,000 people.
The Bill proposes large-scale changes to employment law including making unfair dismissal a day one right, significantly increasing union powers and introducing statutory sick pay from day one.
In the letter, which Mr Ponniah has published on LinkedIn, he states: “We are deeply concerned that some of the Bill’s provisions will have serious unintended consequences that could harm both good employers and the very employees that the Bill seeks to protect.
“Introducing day-one unfair dismissal rights will increase the legal and financial risk of taking on new hires and discourage employers from offering opportunities to individuals who need a first step, a second chance, or time to prove themselves – and further will discourage growth and reduce employment opportunities — especially in labour-intensive sectors like ours.
“Probationary periods are a vital part of responsible recruitment, allowing both parties to assess suitability before long-term commitments are made.
Introducing day-one unfair dismissal rights will increase the legal and financial risk of taking on new hires and discourage employers from offering opportunities to individuals who need a first step, a second chance, or time to prove themselves...
This change will also encourage and increase the number of vexatious claims against employers, over-burdening an already overstretched tribunal system heavily weighted in favour of the employee.
“Meanwhile, introducing statutory sick pay from day one places a new, immediate cost on employers — especially in sectors like ours where staffing models are built around tight margins and stringent contracts.
While we support fair and compassionate sick leave policies, the reality is that many SMEs simply cannot absorb this additional cost without significant impact.
“This additional burden will force some employers to reduce staff headcount or reduce their hours, turn down new contracts or even exit the market altogether.
None of these outcomes will benefit our employees or our customers, many of whom are public services”.
Ponniah stresses the letter is ‘not party-political’.
Most of the Government’s planned reforms to Employment Rights are expected to come in by next year, with other key reforms including curbing ‘zero hour’ contracts, clamping down on ‘fire and rehire’ and enhancing workplace protection.
