The UK government has introduced the Employment Rights Bill. HR leaders will be at the forefront of this transformational shift as the UK government implements it. This new legislation will have a significant impact on workforce management. It will ban exploitative zero-hour contract, end practices such as “fire and hire” and establish flexible working from the very beginning. The Fair Work Agency, which enforces these workplace rights, is a further indication of how important it is for HR professionals prepare and navigate through these changes.
Retail and hospitality, industries that rely on flexible, on demand labour, will be impacted by the ban of exploitative zero-hour contract. HR leaders will need to rethink their workforce strategies in order to maintain the flexibility necessary for a dynamic retail environment while still ensuring compliance.
Zero-hour contracts are currently used by employers to offer flexibility, but workers remain vulnerable due to cancellations and unpredictable shifts. The new bill will introduce minimum obligation contracts that guarantee a minimum number of working hours for every worker. HR leaders need to assess how much they rely on zero-hours contracts, determine staffing patterns and decide the minimum number of hours needed to meet business and legal requirements.
In order to implement these changes, it is likely that those who were previously on zero-hour contracts will be offered minimum hour contracts. This change requires a thorough review of the current workforce strategy, to ensure that all employees have consistent working hours and expectations. Communication with employees regarding their new rights and hours of work will be key to managing expectations and reducing conflicts.
The bill could also signal potential revisions to IR35 payroll legislation. This would have implications for classification of temporary workers, contractors, and payroll. HR leaders will need to audit their staff, update policies and contracts to conform to the new guidelines and work with HR and legal experts to ensure that the transition is smooth. It will require revising employment conditions, such as working hours, rates of pay, and job duties, in order to comply with the new legislation.
HRs should also be ready to accept requests for compressed work hours, remote working, and other flexible arrangements. To ensure a successful implementation, it is important to develop clear policies, train managers to deal with requests fairly and monitor and adjust to balance employee requirements and operational requirements.
The new Employment Rights Bill poses significant challenges and presents opportunities for HR leaders. HR professionals who adapt workforce management strategies, ensure compliance and protect employee rights can help their organisation navigate this regulatory shift, while maintaining operational efficiency.
