Response to latest employment Rights Bill news

After weeks of consultation with business groups and unions, the government has started laying amendments to the Employment Rights Bill.

While some aspects have been welcomed, there are still concerns around clauses that could put workers’ opportunities at risk, as well as create further costs for employers.

Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry explained, “We welcome the government’s commitment to consultation and to handling much of the detail in the Bill via Regulations. This gives more time for discussions – but that has to lead to practical outcomes for businesses across the country. It is also great news that government has stepped back from the anti-growth idea of ending temp-to-perm fees.

“Many of our members and their clients will find it difficult to reconcile that these announcements are unequivocally pro-business and pro-worker if the detailed regulations to come don’t consider the costs to business from overly complex bureaucracy, and a lack of choice on how to employ agency workers who already have employment protections.

“The task at hand is to protect a temporary workforce roughly equivalent to the population of Birmingham and not undermine confidence amongst hirers of permanent staff. This poses a serious economic risk, at a time when building confidence in our economy is more important than ever – keeping people employed, supporting businesses, and strengthening the resilience of the labour market. We want the Bill to be a success, but for that to be the case, government will have to show it is listening to businesses and well as Trade Unions.”

Commenting on the announcement on umbrella companies, Neil said, “Regulating the umbrella market closes a loophole in addressing non-compliance and is welcome. Recruiters have long called for regulations that ensure a level playing field.

Like all aspects of the government’s changes, proper enforcement will be key to protecting both businesses and workers. The new Fair Work Agency needs to be well equipped financially to deal with this important additional bit of scrutiny.”

On the proposals to strengthen Statutory Sick Pay, Neil added, “The expanding scope of SSP in principle is positive for many employees, and employers who want to retain staff by looking after them. But the proposals in the Bill will most likely place the burden of increased costs on agencies, not end hirers, given their ongoing struggles to reclaim SSP from client businesses.

We urge the government to set SSP at a level that helps employers retain staff, rather than being forced into capability-based dismissals.”

To find out more about contracting please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.