"Businesses can finally see the path ahead for this government on employment rights today. There is good news in the timescale for delivery, and in the commitment to consultation, as much of the most important detail is yet to be worked out. This should calm business fears for now – but it does not take away from the need to ensure that we strike the pro-business, pro-worker balance that the government wants. Nothing is more pro-worker than a labour market where businesses have the confidence to invest and create jobs. A strong floor of well-enforced rights is essential in work, but so is job creation. We will judge this government on how it delivers both of these goals, with workforce and productivity at the heart of its industrial strategy.”
Neil Carberry added:
Zero hours contracts
“Far too much is made of zero-hour contracts as being imposed on workers when there is more than enough evidence that people want to work in different ways. The measures in the Bill are targeted, and we welcome the rejection of a ban on these contracts. But even the suggested approach could cause significant challenges if applied without understanding of workers’ varied needs. Carving out space to consult on the specific needs of agency workers is good news – reducing opportunities for people who want flexible work would be a grave mistake.
Unfair dismissal
“The nine months’ probation period that follows a job start should allow for an employer to see if things will work out. We would have preferred a longer period – to protect smaller firms. But the real test is the process firms have to follow to dismiss. It is good that it is to be simplified – but will it be simple enough for even the smallest firms to follow? If it is not, firms may be less likely to take a chance on someone.
Statutory sick pay
“Day One sick pay is a concern for flexible work, as workers will not need to have been on site for any period of time before calling in sick. For agencies who have to meet that cost, building client understanding that this is part of their fee is necessary. Agencies say they will need government support to educate clients on the need to accept rises in NMW and areas like sick pay.
Single worker status
“The decision not to rush the plans to define a single status of worker shows a government that gets how complex and difficult it is to make this work. The REC will continue to make the strong case for why this will not work, and that the UK’s dual status system is well-suited to the labour market we have today. Other countries look to us for a model in how to protect gig workers – why would be ditch it?”
