In the UK, an employee can be made redundant and immediately rehired on less favorable terms: the government wants to limit this practice, which makes employers cringe.

It is a law that excites unions, but irritates business owners. A bill of exceptional scope is being debated in the United Kingdom.

Among the numerous proposals, it plans to strictly limit the possibility of dismissing an employee and rehiring him immediately afterwards under less favorable working conditions. It also aims to drastically reduce the use of “zero hours” contracts. This tool for making the labor market more flexible has until now allowed the employer not to offer a minimum number of weekly working hours to an employee.

It is widely used in England, especially in fast food companies such as McDonald’s, Burger King or Domino’s, or in the social services, hospitality and logistics sectors, according to The Guardian. In total, more than one million employees are affected.

1.2 million employees with better working conditions

A study published by the Work Foundation at Lancaster University and reported by The Guardian shows that if unfair dismissals had been banned from 2023, 1.2 million British employees would have been spared “serious insecurity” at work. Furthermore, if the entire reform had been applied, the number of workers with secure jobs would have increased by 3.9 million to reach 17.8 million, according to the study.

The examination of the bill is already well advanced, but the text is still in the process of parliamentary exchange between the two British chambers (House of Lords and House of Commons) that have not yet managed to reach an agreement. If an agreement is reached, the king should quickly promulgate it, the last step for the text to become law.

A bad idea in a fragile economy, according to businessmen

Employers are widely mobilized to delay or weaken the text’s measures and protect the business world. Particularly strange, the five main British employers’ federations signed a joint letter to try to prevent the vote and enactment of the law, fearing that it would deter companies from hiring, at a time when the economy is especially fragile.

In fact, British growth should remain sluggish this year, at 1%, according to forecasting organization OBR. And the country is worried about its public finances. The UK has seen its debt burden rise due to a 66% rise in debt interest payments, particularly as some of this public borrowing is indexed to inflation, which has started to rise again since the start of the year.

To recover the tens of billions of pounds missing from the coffers and invest in neglected public services, Keir Stamer’s government presented on Thursday, October 30, a budget that foresees a tax increase of 40 billion euros, especially for companies.

Leave from work, right to strike, employment agency…

Despite this gloomy context, the government cannot give up on the famous “employment bill”, which includes dozens of proposals and a provisional implementation schedule over several years.

In addition to limiting “zero-hour contracts” and layoffs-rehiring, the text would eliminate any seniority conditions for parental and paternity leave.

It also eliminates the three-day wait and provides for diets from the first day of illness (currently from the 4th). The new legislation would also introduce bereavement leave in the event of a miscarriage, regardless of when it occurs (so far, only after 24 weeks of pregnancy).

It also provides for the repeal of a 2023 law that authorizes the government to establish minimum service levels during strikes in essential services. Another 2016 law on unions, which imposed several limitations on strikes, including longer notice periods, would also be widely questioned. New protections are also planned for unionized employees and union representatives.

Finally, the “employment bill” provides for the creation of a Fair Work Agency by April 2026. Its mission will be to monitor the correct application of labor market rules. Like the labor inspection in France, you will be able to access the premises to obtain documents and consult electronic files.

If voted on in Parliament, the text should receive “royal assent”, that is, be promulgated by the king, in the coming weeks.