Changes in employment law can significantly affect the recruitment industry, impacting both the staff involved in providing recruitment services and the overall nature of the service itself. Whilst mainstream news tends to focus on the impact on internal staff, it’s crucial to have a deep understanding of the industry to assess the impact on the supply of agency temps.
What is being proposed?
Labour’s full proposals can be found here, but some key points that could influence the supply of temporary workers include:
- banning zero-hour contracts
- introducing a right to a contract reflecting average working hours
- ending the practice of ‘fire and re-hire’
- providing basic rights from day one, including protection from unfair dismissal, while still allowing for probationary periods and fair dismissals
- introducing a single worker status to replace the current system of distinguishing between employees and workers
- removing waiting days for statutory sick pay
Potential impact
Introducing a single worker status, banning zero-hour contracts, and enhancing protection from day one could affect the supply of agency temps considerably. However, it’s important to note that these changes won’t happen immediately on the 5th July. They will require consultation and a parliamentary process. As we know the devil is in the detail.
As well as challenges, these proposals may also bring benefits to the recruitment industry. The rationale for these changes is to “challenge inactivity,” “get more people into work,” and “make it easier to change jobs.” The proposals aim to address the current uncertainty regarding worker and employment status. Labour also intends to support recruitment in specific sectors, such as social care and education.
For more information on the potential impact of these proposals, or for rapid advice on any recruitment or employment law matter, please contact us on 01273 236 236 or email us at info@lawspeed.com.
