Employment Rights Bill – Public Bill Committee Debate

With its potential to reshape hiring practices, the impending Employment Rights Bills remains firmly on the radar of recruitment agencies. 

Central provisions of the Bill include day one rights for employees, changes to Statutory Sick Pay and protections against unfair dismissal. These changes aim to enhance worker security but the compliance and financial implications are raising concerns for businesses. 

Public Bill Committee Debate

At the end of November, the Public Bill Committee met to scrutinise the proposed legislation. Key measures under discussion included the provisions for flexible working, enhanced protections against unfair dismissal and stricter minimum wage enforcement. The debate centred on striking a balance between worker protections and the operational needs of businesses, especially smaller enterprises.

Concerns were raised about enforcement challenges in sectors with a history of worker exploitation, highlighting the importance of clear and workable legislation.

The Committee heard from several key stakeholders, including representatives from major business organisations. 

Key issues under discussion

Temporary Work and Hiring Practices
Jane Gratton, of the British Chambers of Commerce, highlighted significant concerns from businesses around “day one rights”, noting that 38% of surveyed firms anticipate hiring freezes if the legislation is passed. Employers are expected to increasingly favour temporary and contract workers to minimise legal risks and complications, with some predicting reduced pay and limited investment as additional consequences.

Statutory Sick Pay
The proposal to remove waiting days from Statutory Sick Pay was a focal point of the debate. While employers support aiding long-term sick employees, Gratton emphasised that the single day of sickness absenteeism is the most disruptive. Many businesses have called for the government to consider a compromise of two waiting days before SSP is payable, to alleviate financial strain, particularly for SMEs.

Day One Rights
Alex Hall-Chen, from the Institute of Directors, raised concerns about the broader impact of day one protections, particularly in relation to hiring risks. Employers may become reluctant to take chances on less-qualified candidates due to heightened financial liabilities. This could disproportionately impact individuals on the fringes of the labour market, especially as these are the people that the Government need to get back into work to meet their ambitious 80% employment rate target.

Keeping you ahead of the curve

At Liquid Friday, we are committed to keeping our recruitment partners updated on the changes posed by the Employment Rights Bill as it progresses. We are actively monitoring developments, analysing their implications and sharing actionable insights to keep agencies fully informed and prepared.

We’re also working closely with influential bodies like the FCSA and other industry organisations to steer government discussions and shape practical solutions for the temporary recruitment sector. We’re in it for the long haul, so stick with us!