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UK ministers fire starting gun on landmark worker rights reform

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UK bosses will be able to fire new recruits after a warning of poor performance during a nine-month probation period, in a last-minute concession to business that will soften the impact of Labour’s flagship reforms to workers’ rights. 

Draft legislation published on Thursday sets out a swath of changes to UK employment law that together constitute the biggest overhaul in a generation. 

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The Employment Rights bill will give shape to 28 of the roughly 70 measures promised by Sir Keir Starmer’s party before the election in its “Plan to Make Work Pay”.

These include a clampdown on zero hour contracts, stronger rights to work flexibly if feasible and curbs on employers’ use of fire and rehire tactics.

But the most contentious provision, day one protection against unfair dismissal, will be softened considerably under government proposals for a statutory probation period during which employers will have to follow only a “lighter touch” process to justify a dismissal. 

Ministers are planning to consult for several months on the maximum length of the probation period but are already minded to opt for nine months, according to officials. 

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Many of the measures will be subject to further consultation to thrash out the details of secondary legislation needed to implement them, while other measures will be added to the bill at a later stage, or pursued separately in future by other means. 

As a result, the majority of the reforms will not take effect any earlier than 2026, the government confirmed.

Angela Rayner, deputy prime minister, is presenting the package as a way to “boost pay and productivity” in an economy “riven with insecurity”. Paul Nowak, general secretary of the Trades Union Congress, the umbrella body for the UK labour movement, described it as a “seismic shift” that would improve working life for millions of people. 

But businesses are alarmed at the cumulative impact of the reforms, and in particular by the scrapping of the current two-year qualifying period for unfair dismissal.

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Tina McKenzie, policy chair at the Federation of Small Businesses trade body, described the bill as “a rushed job, clumsy, chaotic and poorly planned”.

The government has said the changes will help more than 1mn people working on contracts with no or few guaranteed hours, who will gain new rights to a contract reflecting their regular hours, and to notice or compensation when shifts are cancelled. 

An extra 30,000 fathers will benefit from a right to take paternity leave from the first day in a job, scrapping the current qualifying period.

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The bill will also broaden coverage of statutory sick pay, strengthen trade unions’ role in the workplace, pave the way for collective bargaining in the care sector, establish a new agency to enforce employee rights and strengthen protections at work for new mothers, among other changes. 

A nine-month probation period is longer than Rayner initially envisaged and follows intense lobbying from businesses that had the backing of business secretary Jonathan Reynolds and chancellor Rachel Reeves.

While employers will still need to show they have acted fairly in dismissing a new hire, they will not need to follow the lengthy process typical at present when dismissing an employee of more than two years tenure. Giving written notice could suffice, officials suggested.

Details of how a probation period works will be subject to consultation, however, and will need to be set out in both secondary legislation and a separate code of conduct. This means the day one right will take effect in autumn 2026 at the earliest. 

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Other consultations will look at how to determine workers’ regular working pattern, in order to offer them an appropriate contract, and how to ensure businesses only use fire and rehire when they are at genuine risk of going bust. 

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Biden-Netanyahu call fails to dispel doubts over US ability to influence Israel

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Joe Biden on Wednesday pressed Benjamin Netanyahu to find a diplomatic solution to the conflict in Lebanon and minimise civilian casualties in Israel’s strikes against Hizbollah, even though previous calls for restraint from the US have fallen flat.

The US president and the Israeli prime minister spoke by phone for the first time in two months after a new flare-up in tensions between the two allies compounded by miscommunication over Israel’s approach to expanding conflict in the Middle East.

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The conversation, which was described as “direct” and “productive” by the White House, came as US officials try to limit Israel’s response to last week’s Iranian missile attack on the country and rein in its ground offensive in the south of Lebanon.

However, there are widespread doubts over Biden’s influence over Netanyahu after the Israeli prime minister has time and again ignored Washington’s pleas for more limited military operations and increased diplomatic engagement since the war in Gaza broke out in October 2023.

Those concerns have grown more acute in recent weeks, as Israel’s military has sharply increased its attacks on Hizbollah, the Iranian proxy group operating in Lebanon, directly defying Biden’s calls for a ceasefire in the region at the UN General Assembly in New York last month.

According to the White House, Biden did not call for Israel to stop all military operations in Lebanon in his conversation with Netanyahu on Wednesday.

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But he did tell the prime minister that a “diplomatic arrangement” was needed for Lebanese and Israeli civilians to return to their homes on both sides of the “blue line” — the de facto border between the countries. He also called for Israel “to minimise harm to civilians” in Lebanon, especially in the capital, Beirut.

The White House did not say whether the two leaders discussed Israel’s looming response to Iran, though the US president has warned the Israelis away from striking nuclear facilities and energy infrastructure.

But while Biden and other top US officials have repeatedly been irked and even angered by Netanyahu’s unwillingness to heed their advice, they have been unwilling to make any big changes in US policy to raise the pressure on Israel — such as an arms embargo.

“Biden has been unwilling to use his leverage over Netanyahu because of the president’s persona, policy and domestic politics, especially so close to one of the most consequential elections in modern American history,” said Aaron David Miller, an analyst at the Carnegie Endowment for International Peace.

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“Biden’s margin for pressuring Netanyahu contracted, [while] Netanyahu’s margin for resisting that pressure expanded,” he added.

In recent weeks, US officials have acknowledged that Israel has made what they see as tactical gains against Hizbollah in Lebanon after it killed Hassan Nasrallah, its leader, and damaged much of the group’s capacity to strike at Israel.

But Washington has also warned Israel against overplaying its hand, insisting there should be a path back to a truce.

When Netanyahu on Tuesday warned the Lebanese people in a video address to root out Hizbollah or face similar destruction to what Israel inflicted on Gaza, Karine Jean-Pierre, the White House press secretary, responded: “We cannot and will not see Lebanon turn into Gaza — into another Gaza.”

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Other US officials have said Israel needs to develop a better long-term vision for its place in the Middle East.

“The challenge going forward is to turn tactical wins in battle into a strategy that secures Israel’s people and its future,” Jake Sullivan, Biden’s national security adviser, said at an event at the Israeli embassy in Washington this week.

“That takes real discipline, it takes courage, it takes foresight to match the conduct of war to a clear and sustainable set of objectives. That is never easy, but it’s imperative,” he added.

But many in Washington say US diplomacy towards Israel has floundered. “US policy has been trying to both deter and de-escalate at the same time, and realistically speaking, you can most effectively do one or the other, but trying to do both seems to have limited effects in both directions,” said Jonathan Lord, an analyst at the Center for a New American Security.

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‘I was evicted and lost £20,000 in a rent scam’

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'I was evicted and lost £20,000 in a rent scam'
Sam Read/BBC Craig Spokes is looking at the camera with a serious expression and wearing a white T-shirt with a blue shirt open on top. He is standing in a garden with hanging baskets in the background.Sam Read/BBC

Craig Spokes is rebuilding his life in Northampton and has a new job after losing almost £20,000

A man said he felt “embarrassed and ashamed” after losing almost £20,000 of his inheritance in a rental scam and being evicted from his flat three weeks after he moved in.

Craig Spokes, 36, from Northampton, paid a year’s rent upfront for a flat in London to Samy Daim, who he believed was the landlord. Yet less than a month after moving in, Mr Spokes was told to leave and all his possessions were left on the street.

Mr Daim, 27, has since not responded to Mr Spokes or to the BBC’s requests for comment.

Action Fraud, the police reporting body for scams, said it was not recommending an investigation into the case.

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Instagram Samy Daim wearing a white dressing gown and holding what appears to be an iPad. He is standing by an infinity pool with a city skyline and sunset behind. Instagram

Social media accounts of Samy Daim show pictures of him in luxurious locations around the world

In October 2023, Mr Spokes was looking to move to London after leaving a career as a cruise ship entertainer.

He said Mr Daim had told him he was the landlord of a flat in Bloomsbury, which could be secured for a £500 a month discount if a year’s rent was paid upfront.

Mr Daim was in fact a tenant himself, renting the flat from the real landlord, but he gave Mr Spokes the keys to the property and allowed him to move in.

The BBC has seen court documents that show Mr Daim owed more than £14,000 in rent to the real landlord and this had led to bailiffs being sent to the property.

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Instagram Samy Daim standing in a wooden room with an elephant's head coming through the window with its trunk extended upwards and taking food from Mr Daim's hand. Mr Daim is wearing a white T-shirt and smiling as he looks at the elephant.Instagram

Samy Daim’s social media profiles show him on trips to places such as Thailand, where he is pictured with elephants

The flat was listed on a letting agency website, but rather than using the company’s payment system Mr Spokes transferred £19,500 directly to Mr Daim to cover a year’s rent and deposit.

The money had come from his inheritance after his father Barry died of cancer.

Yet as he got ready for work one morning three weeks after moving, Mr Spokes was evicted by bailiffs instructed by the real landlord.

“By 08:30 everything was out on the streets,” he said. “It was a whirlwind and I was in such a state of distress. I was made to feel like a criminal.”

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‘Embarrassed and ashamed’

The experience has had a lasting impact on Mr Spokes who said he “felt so embarrassed and ashamed that I had fallen for this scam”.

He said for a period “days would go by and I couldn’t even go out”.

Mr Daim has not responded to Mr Spokes since the eviction. His social media profiles appear to show a jet-set lifestyle.

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He has not responded to BBC attempts to contact him.

instagram Samy Daim sitting on top of a white 4x4 vehicle parked beside a beach with  palm trees in the background. Mr Daim is wearing an unbuttoned white shirt with blue trousers and cap.instagram

Samy Daim is listed as the sole director of Cobblestone Realty Group Ltd and shown beside the beach at Key West in Florida

‘Let down’

Mr Spokes was told by the Metropolitan Police to report what had happened to Action Fraud, the national reporting centre.

Action Fraud does not have investigative powers, but assesses which cases to pass on to police forces for investigation.

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This case was not passed on and Mr Spokes said he felt “let down” by police and that it had been treated as if it was “not that serious of a crime”.

Action Fraud said reports were assessed against criteria including “the vulnerability of the victim”.

It added that it prioritised “reports most likely to present an investigative opportunity for local police forces, those where a crime is ongoing and those that present the greatest threat and harm to the victim or victims concerned”.

In 2023 Action Fraud classified 5,093 reports as rental fraud.

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‘Controls in place’

Mr Spokes said he also felt “let down” by his bank, Kroo, which said it will not repay the money.

Kroo said it has “a number of controls in place to manage financial crime and protect customer funds”.

Sam Read/BBC Pat Coomber-Wood is looking at the camera in an office with a straight face while wearing a top with a flower design on it.Sam Read/BBC

Pat Coomber-Wood from Citizens Advice said people should “slow down” the process of signing a contract

‘Don’t be rushed’

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Mr Spokes said he felt like he had “double-checked” everything before transferring the money, but all the information he had been provided “was part of the scam”.

Pat Coomber-Wood, the chief executive officer of Citizens Advice West Northamptonshire and Cherwell, said anyone feeling under pressure to sign a contract should “put the brakes on – it is better to miss out than be scammed”.

She said a land registry search, which costs £3, could determine whether the person you were dealing with owned the property.

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Room2 launches new loyalty scheme offering a free birthday stay

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Room2 launches new loyalty scheme offering a free birthday stay

Members of The Hometel Club will qualify for a free birthday stay at any room2 property when they complete a paid-for stay

Continue reading Room2 launches new loyalty scheme offering a free birthday stay at Business Traveller.

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Any UK debt rules must ensure ministers are held to account

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The FT editorial is right that the government’s debt rule needs an overhaul (“Britain’s debt rule is not fit for purpose”, FT View, October 7). The existing, rolling target is easily gamed and hides the need to take difficult decisions in order to secure debt sustainability in the medium to long term. Creating a target that has teeth is critical if debt is to be put on a sustainable path in this parliament. Muddling through is not an option.

In its most recent report entitled “National debt: it’s time for tough decisions”, the House of Lords economic affairs committee proposed that a new fiscal framework should set out how debt as a proportion of gross domestic product will be lower on a given date in five years’ time. Each year, a further target for debt in the fifth year should be set. The target for the fifth year should remain fixed until reached. Each target should be lower than the one set in the preceding year, unless there are exceptional reasons.

As part of this new framework, we would caution against borrowing for investment being accounted for outside the government’s debt target measure given that the definition of “investment” is not clear cut.

This framework would show whether the UK has a sufficient fiscal buffer to withstand an economic shock. It would enable parliament to hold ministers to account for the government’s fiscal plans. And, above all, it would help ensure that the UK’s debt is sustainable.

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Lord Bridges of Headley
Conservative Peer, Chairman, Economic Affairs Committee, House of Lords, London SW1, UK

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FT Crossword: Number 17,864

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FT Crossword: Number 17,864

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Sick pay and parental leave part of major overhaul

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Sick pay and parental leave part of major overhaul
Getty Images Female professional wearing a grey jumper balances her baby while sitting down at a desk at home where she is reading a documentGetty Images

A planned overhaul of workers’ rights would give millions of people the right to claim unpaid parental leave and stronger protections from unfair dismissal from their first day in a job.

The government is set to announce the details of its Employment Rights Bill, which it says would end the “exploitative” use of zero-hours contracts and “fire and rehire” practices.

Deputy Prime Minister Angela Rayner described this as the “biggest upgrade to rights at work for a generation”.

There are 28 separate measures in the bill to be introduced later, most of which will be subject to further consultation and will not take effect before autumn 2026.

The government is seeking to be pro-worker and pro-business and striking that balance means that much of the detail is still to be decided.

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While some unions have welcomed the announcement, business groups have expressed concerns about how the changes will work in practice.

As part of the plans, the existing two-year qualifying period for protections from unfair dismissal will be removed and workers will have them from their very first day in a new job.

Ministers have said this would benefit some nine million workers who have been with their current employer for less than two years.

What else will change?

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  • Statutory sick pay (SSP): Workers will be entitled to SSP from the first day they are ill, rather than the fourth day
  • Lower earnings limit for SSP: Currently, workers earning less than £123 per week cannot claim SSP. This limit will be removed but the bill will set out a lesser level of sick pay for lower earners
  • Paternity leave: Fathers to be eligible from day one of employment, instead of 26 weeks
  • Unpaid parental leave: Parents to be eligible from day one of employment, instead of one year
  • Unpaid bereavement leave: To become a “day one” right for workers
  • Flexible working: Bosses will be expected to consider any flexible working requests made from day one, and say yes unless they can prove it is unreasonable

Roughly 30,000 fathers or partners will be eligible for paternity leave as a result, while 1.5 million parents will have the right to unpaid leave from day one under the changes.

“Too many people are drawn into a race to the bottom, denied the security they need to raise a family while businesses are unable to retain the workers they need to grow,” Ms Rayner said.

“We’re raising the floor on rights at work to deliver a stronger, fairer and brighter future of work for Britain.”

The government will also consult on a new statutory probation period for new hires.

While Business Secretary Jonathan Reynolds had previously suggested the new legislation would mean a maximum probation period of about six months for most businesses, it has proven a tricky subject during discussions.

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Some trade unions are worried that a short period of probation could make firms reluctant to take on new staff, or even cut jobs.

Dominic Ponniah wearing a white shirt and navy jacket standing in front of a number of Henry brand hoover vacuums

Dominic Ponniah says his cleaning firm is delaying hiring plans

Dominic Ponniah, the boss of Cleanology, told the BBC his firm is delaying hiring plans while being more cautious of who it takes on.

The cleaning company he runs has about 1,300 employees located from Scotland to Southampton.

“Hiring people is quite a big thing, costly, and people are concerned about the ramifications after these announcements,” he said.

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“It’s just another thing that businesses have to contend with,” he said, adding that the new rules around sick pay, unfair dismissal and probationary periods would make business “very, very nervous”.

Tina McKenzie, policy chair at the Federation of Small Businesses suggested that the new bill was a “rushed job, clumsy, chaotic and poorly planned”.

She said that smaller firms would be left “scrabbling to make sense” of the changes and called for a full consultation on each individual measure.

The matter of zero-hours contracts has also been hotly debated.

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Under the Employment Rights Bill, bosses will have to offer workers a guaranteed-hours contract based on the hours they have clocked up during a 12-week period.

Workers on zero-hours contracts will also be entitled to “reasonable” notice ahead of any changes being made to their shifts, as well as compensation if a shift is cancelled or ended early.

Zero-hours contracts have come in for criticism in the past as the likes of factory or warehouse workers have missed out on a steady income and certain benefits.

But UKHospitality said it is the preferred policy for workers in their sector.

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Ruby, a first-year university student, told the BBC that she is on a zero-hours contract with her local football club, selling food and drinks on match days.

“In my situation it’s quite good. I can pick up shifts if and when I need a bit of extra money, or if I’m home for the weekend,” she said.

She says that this approach offers her more flexibility than a contract specifying a certain number of hours would.

“If I’m there and I want to do it, I can do it.”

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‘Flexibility’

The business secretary said on Thursday it was “vital” to give employers flexibility to grow, while ending what he described as “unscrupulous and unfair practices”.

Gary Smith, general secretary of the GMB union, described the bill as a “groundbreaking first step to giving workers the rights they’ve been denied for so long”.

But he added that there is a “long way to go”, and called for unions and workers to be involved in the discussions around the new legislation.

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“The legislation must be watertight and without loopholes that could be used by those wanting to delay the rights workers so desperately need,” he said.

Some measures included in Labour’s plan to “Make Work Pay”, issued in the run-up to the General Election, will not feature in the bill either.

The “right to switch off”, for example, will be part of a “Next Steps” document in which the government will set out hopes for further reform.

Conservative shadow business secretary Kevin Hollinrake said that the party would look “closely” at the detail of what Labour has set out.

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“But businesses and the economy needs certainty not the threat of being sent back to the 1970s, unleashing waves of low threshold, zero warning strikes, driving down growth and slowing productivity,” he said.

Additional reporting by Emer Moreau.

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