UKHospitality: ‘Ongoing consultation over Employment Rights Bill needed to avoid unintended negative consequences’

The trade body has welcomed ‘the recognition of the importance of employment flexibility’ in the Government's Employment Rights Bill, but warns that changes are ‘not without cost’ and ongoing consultation ‘is needed to avoid unintended negative consequences’.

Legislation introduced in Parliament today (10 October) under the Employment Rights Bill has previously been described​​ by the Government as being ‘the biggest upgrade to workers’ rights in a generation’.

The bill brings forward 28 individual employment reforms including ending zero-hour contracts and fire and rehire practices, and establishing day one rights for paternity, parental and bereavement leave for millions of workers.

Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in; and the Government will consult on a new statutory probation period for companies’ new hires.

Accompanying this will be measures to ‘help make the workplace more compatible with people’s lives’, with flexible working made the default where practical.

Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers.

A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.

“One of our primary messages during a long period of dialogue with Labour in opposition and in Government was to recognise the importance of flexibility to both workers and businesses, and I’m pleased it has done that today,” says Kate Nicholls, chief executive of UKHospitality

“However, these changes are not without cost. That’s why the Government should take its time to get the details right, through close consultation with businesses to avoid unintended consequences.

“Rushing to introduce measures too quickly would be the wrong thing to do and would increase the chances of inflicting damage to sectors like hospitality, an employer of 3.5m people and a provider of some of the most flexible roles in the economy.”

With regards to zero-hour contracts, UKHospitality says it supports tackling any exploitative use of them, but adds that protecting access to them is ‘essential for hospitality workers and businesses’.

According to the legislation, those on zero-hour contracts, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period.

However, those who wish to remain on zero hours contracts can if they prefer to.

“Protecting the right for employees to access zero hours contracts when they want them, instead of an outright ban, is a good example of how working together can avoid those potential pitfalls but still eliminate exploitative practices,” Nicholls adds.

She notes figures from to a House of Commons Library research briefing on zero hours contracts that found 90% of people on zero hours contracts said it was their desired contract.

However, the Government says its own research shows 84% of zero hours workers would rather have guaranteed hours.

Hospitality and leisure bosses have been warning that a ban on zero hours would make it harder to hire and cause ‘unintended consequences’ for the economy.

There were suggestions last month​​ that a crackdown on zero-hour contracts by the Government could see companies forced to offer all staff regular hours after three months.

“The UK’s out-of-date employment laws are holding our country back and failing business and workers alike,” says Deputy Prime Minister Angela Rayner.

“Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.

“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.

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