Tread Carefully, Labour

The thorny issue of unfair dismissal

Ray Hill
Founder and Secretary of the Health Food Institute

I know that the unwritten law for retailers is to never discuss politics or religion with customers. However, as I am writing in a trade magazine, I am assuming I can say my piece which is about the Labour Chancellor of the Exchequer Rachel Reeves' proposed rules in relation to employment conditions.

I write as an employer in a retail business, so it is understood that my case may be one-sided. When I first read about the proposed rules on staff dismissal, describing the government's plan to make unfair dismissal a right from the first day in a job, my reaction was, "it won't work because it is unfair on the employee and the employer."

Labour, by virtue of its name, has tended to side with the employee so it is not a surprise that this subject would be early on the agenda. And whilst the various probation periods over the years have changed, I have to say the current two years is clearly too long and to the employers' advantage. To expect an employee to work for two years, knowing dismissal could come at any time without warning, is unreasonable from a mental health point of view.

Later the proposal changed somewhat to 'after a probation period' which seemed fairer on both parties. However, at the time of writing, I have not yet seen how long or short this might be.

From a retail perspective, the government needs to tread carefully. Wages alone have certainly hit health food shops hard and other shops too. Business tax is another overhead that is crippling retailing. Empty high street shops up and down the country are already highlighting a problem that may see many more independent shops along with small multiples call it a day. Every shop that has to close reduces the opportunity for employment, particularly for those who are, for a variety of reasons, only able to work part time.

From an independent retailer perspective, a six-month probation period would suffice. However, from my experience, it does not take long to know whether a new employee will be an asset to the business. It is the unexpected that needs a reasonable time to assess.

The government should think carefully before placing further financial burdens on the independent retailer, forcing more closures and leaving those seeking retail work with fewer opportunities.

Having been over generous with a 15% pay rise for train drivers who already earn in excess of £64,000 a year and settling, for the time being, the junior doctors' strike, they will have now learned that trade unions are there to ensure their members are financially looked after by their employers. That keeps the unions in business.

That the government is now saying there will be consultation with industry suggests they are listening and wanting to get it right. We shall see.

CONTACT: 0115 9234 534 or 07582 134470, email [email protected]