The Government will lay amendments to the Employment Rights Bill following weeks of consultation with business groups and unions. The Bill aims to boost productivity and create the right conditions for sustainable, inclusive, and secure economic growth, delivering on the Plan for Change. Improving workers’ rights is central to this plan, putting more money in people’s pockets and enhancing their day-to-day lives.
Zero-Hours Contract Reforms: A Double-Edged Sword
Leaders in the recruitment industry are voicing concerns over the proposed inclusion of agency and flexible workers in zero-hours contract reforms. Seb Maley, CEO of Qdos, warned that “a one-size-fits-all approach could well backfire, affecting the flexibility of the labour market at a time when businesses rely on temporary workers to manage rising employment costs.”
Tania Bowers, Global Public Policy Director at APSCo, added, “The extension of zero-hours legislation across the temporary workforce is over-regulation, aimed at closing loopholes rather than addressing actual exploitation risks in the professional sector.” Bowers emphasized that staffing firms would struggle to guarantee workers' hours, putting them in a difficult financial position.
Impact on Compliance and Business Confidence
Neil Carberry, CEO of the Recruitment & Employment Confederation, cautioned that the current approach “will drive serious non-compliance and false self-employment at workers’ cost.” He stressed that the regulations must consider the financial burden on businesses and allow flexibility in employing agency workers.
Government Tribunal Claims: An Unprecedented Move
Charlie Barnes, Head of Legal Services at RSM UK, criticized the amendment granting the government the power to make employment tribunal claims on behalf of workers. He called this “a highly irregular development” and noted that implementing the Business and Trade Committee’s recommendation of one Fair Work Agency inspector per 10,000 workers by 2029 would require significant investment, increasing the number of inspectors from 600 to 3,000.
Umbrella Company Regulation: A Long-Overdue Step
Dave Chaplin, CEO of ContractorCalculator, welcomed the proposed regulation of umbrella companies and the measures to eliminate non-compliant schemes. “Shifting PAYE responsibility to agencies and end clients is a game changer, ensuring taxes are properly collected before rogue umbrella companies can rip off workers and the exchequer,” he stated. Chaplin praised the reforms for bringing long-overdue accountability to the industry.
Conclusion
As the Employment Rights Bill progresses through Parliament, industry leaders urge the government to implement balanced and effective regulations that protect workers without imposing undue financial and operational burdens on recruitment firms.
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