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Consultation is key to cracking new Employment Rights Bill

10 October 2024 By Eloise Feilden

Sir Keir Starmer’s Labour government has unveiled the most significant reforms to employment rights in a generation, but what next steps need to be taken to get the best outcome for hospitality staff and businesses?

The UK government published a new Employment Rights Bill this morning (10 October) in a bid to tackle poor working conditions and benefit businesses and workers alike.

The bill will bring forward 28 individual employment reforms. The list includes establishing day one rights for paternity, parental and bereavement leave for millions of workers.

Statutory sick pay will also be strengthened by removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

The existing two-year qualifying period for protections from unfair dismissal will be removed, meaning all workers will have a right to these protections from day one on the job. The government will also consult on a new statutory probation period for companies’ new hires.

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.

Flexible working will be made the default where practical.

Kate Nicholls, chief executive of UKHospitality, said she was “pleased” by the government’s recognition of the importance of “flexibility to both workers and businesses”, something UKHospitality has been in dialogue with the Labour party over for some time.

However, she warned that the changes “are not without cost”.

Zero hours: friend or foe?

A key point of contention in the new Employment Rights Bill relates to the pledge to end what the government is calling “exploitative zero hours contracts”.

According to a House of Commons Library research briefing on zero hours contracts cited by UKHospitality, 90% of people on zero hours contracts said it was their desired contract.

Ending zero hours contracts could negatively impact both employers and employees looking for flexibility.

Nicholls noted that these contracts are attractive to workers in hospitality and beyond who “actively seek the flexibility to accommodate their lives as working parents, carers, students and many more who lead busy lives”.

Consultation

UKHospitality is therefore calling for consultation on the bill’s proposed reforms to get the best outcome for all involved.

Nicholls said: “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.

“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.”

Drinks and hospitality businesses are already being squeezed, and trade bodies have warned Rachel Reeves, the Chancellor of the Exchequer, that it would be disastrous if she were to increase excise duties or business taxes in her first Budget at the end of October. Read more here.

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