The Business and Trade Committee published its recommendations on the Employment Rights Bill that was presented to Parliament in October of last year.
The report of the Committee is meant to inform the Parliament and public about the possible impact of the Bill. The Government has called it ” a significant update of workers’ rights for a generation“. It also highlights areas that may need amendments before the legislation can progress further in the House of Commons.
The Committee’s main recommendations are to improve protections for zero-hour contracts workers, strengthen industrial relations strategy, and ensure effective enforcement of the new rights.
The need for clearer descriptions of what constitutes a reasonable notice of a shift, compensation for work cancelled and the removal references to minimum hours are all key concerns. The report calls for action to close loopholes regarding employment protections, and encourages the government to align its modern slavery legislation to international standards.
Demands for a stronger industrial relations strategy
The Committee recommended that the Government develop a long-term strategy for industrial relations to ensure that collective employment rights are effective. The Committee also highlights the gaps in the Bill. For example, Section 54 of Modern Slavery Act needs to be amended to improve transparency and due-diligence in the private sector. There are fears that the UK may become a destination of goods made with forced labor if these changes are not made.
The report also stresses the need for adequate funding and enforcement mechanisms to ensure that the Bill’s provisions are effective.
Ben Willmott is the head of Public Policy at the CIPD. He supports the call for more resources to be allocated to the Fair Work Agency, but warns that this will not suffice in ensuring compliance.
He stated, “The Fair Work Agency is only one part of an enforcement system. Acas needs to have more resources in order to assist employers, especially smaller firms, with their compliance.
“More consideration needs to be given to how the Bill’s measures will be implemented effectively in workplaces in order to avoid more workplace disputes, and an increase in employment court claims.” The Government should give priority to the development of a plan for implementation and assistance for employers in preparing for the new regulations.
He said that employers’ understanding and enforcement of the law will be crucial.
Employment Rights Bill: Implementation and Complexity
The Recruitment and Employment Confederation has expressed concern over the complexity and potential burden of the Bill on businesses. REC Chief executive Neil Carberry said that employers needed clear and practical requirements as well as enough time to adapt to the new regulations. He said that adding more details to the Bill may require a longer implementation timeline.
Carberry also stressed that collaboration between employers, trade unions and employees is essential. He said: “What the unions negotiated before the election was one thing. But good employment relations depend on bringing together employers and employees – and not pre-election agreements that are short on details and long on the potential economic damage.” Let’s talk about it and make sure we get the right things.
The REC has also highlighted the financial pressures that businesses are facing, such as rising costs and changes to National Insurance. Carberry said that, while some employers have been criticised because of poor employment practices and treatment of employees, the majority are committed to fairness.
They are facing a number of increasing business costs including changes to National Insurance brought about by the Budget. Carberry said that they could only create jobs when their businesses are viable. A flexible labour market, which allows for different types of work to be a part of the process of creating opportunity and growth is crucial.
The Employment Rights Bill is still progressing through the Parliament. In the next few months, it will be subjected to further scrutiny and possible amendments.
