The new Labour government is moving forward with its plans, and a key element of their election promises is the “Make Work Pay” initiative. Central to this is the proposed Employment Rights Bill.
According to the Labour Manifesto, the Employment Rights Bill is expected to be published within the first 100 days of the new government, meaning we should have more information by October 13th. However, the full details may not be revealed until the Autumn Budget statement on October 30th.
As we await these announcements, let’s explore some potential proposals and how recruitment agencies can prepare to stay compliant, stay ahead, and continue thriving in a competitive industry.
Equal terms.
Change: The proposed legislation aims to reduce the disparity between employees, workers, and potentially the self-employed. This could mean workers receiving benefits such as paid annual leave, improved job security, and access to company benefits.
Action: Recruitment agencies should review and potentially revise contracts and policies to ensure compliance with these changes.
Day one rights.
Change: The legislation is expected to introduce “day one rights,” ensuring that workers are entitled to certain benefits, such as parental leave and sick pay, from the first day of employment. Statutory Sick Pay (SSP) is also set to increase, though the exact amount is not yet specified.
Action: Recruitment agencies will need to support their clients by clearly outlining any increases for both current workers and new hires.
Unfair dismissal protection.
Change: The new legislation aims to protect workers against unfair dismissal from the start of their employment, including during probationary periods. Workers will have the right to challenge unfair dismissal from day one.
Action: Agencies should advise clients on managing probationary periods and ensure dismissal policies are compliant with the new protections.
Removal of waiting periods and earning limits.
Change: Statutory payments, such as maternity and sick pay, may no longer have waiting periods or earning thresholds, making these benefits more accessible to workers.
Action: Recruitment agencies should prepare for the potential financial impact on employers and adjust their financial planning and benefits processes accordingly.
Banning zero-hour contracts.
Change: The use of zero-hour contracts may face restrictions, particularly regarding the duration and conditions under which they can be used. Contracts may need to reflect working patterns after 12 weeks.
Action: If these proposals are implemented, agencies will need to collaborate with clients to establish more predictable working arrangements and revise contracts as necessary.
In conclusion…
The proposed changes in employment legislation represent a significant shift in workers’ rights in the UK. While these changes will provide increased benefits for employees and workers, they will also pose challenges for employers, particularly recruitment agencies.
It is essential for your recruitment business to stay informed and proactive in preparation for these changes. Parasol is here to support your recruitment business through these transitions and looks forward to helping you and your clients navigate them effectively and compliantly.
To discuss these changes further, please reach out to your Parasol CRM or contact our Director of Compliance, Chris Bloor, at chris.bloor@caroola.com.
