Recruitment Company, Robert Walters, Reaction to the Government’s Employment Rights Bill

Posted By: Christopher Morganon: October 17, 2024In: Current Affairs, News, Politics, The DEN

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By Joshua Robinson –

The recruitment company, Robert Walters, has recently responded to the Government’s new Employment Rights Bill after it was announced on Thursday 10th October 2024.

According to the Government, the Employment Rights Bill aims to:

Give protection against unfair dismissal from day one, while allowing employers to operate probation periods
Establish parental and bereavement leave from day one
End zero hour contracts
End unscrupulous practices of fire and rehire and fire and replace
Make flexible working the norm where practical
Deliver stronger dismissal protections for pregnant women and new mothers
Establish a new Fair Work Agency with new powers to enforce holiday pay
Strengthen statutory sick pay

Richard Harris, Chief Legal Officer at Robert Walters said: “These changes are more prescriptive than we have seen before and more targeted at supporting more financially vulnerable workers. However, it is not without challenges from a practical point of view. For example, where a business is simply not geared up to managing shift patterns and do so will add additional administration and cost. Startups and small businesses often need flexibility to be competitive. What will be critical for these companies will be the detail and we are yet to see. What is a reasonable number of shifts.”

“The Government also plans to strengthen statutory sick pay by removing the lower earnings limit and cut out the buffer period to ensure workers are entitled to it sooner. Not only that, but the government plans to deliver support to working families in the form of day one rights for family leave rights. Improved protection from unfair dismissal for women whilst pregnant, on maternity leave and within six months of returning to work are all on the table, but we need to see the details to appreciate how effective these measures may be. It is interesting to see that levels of maternity and paternity statutory pay are not mentioned.”

Richard Harris added: “Collectively, Labour’s laws are pushing forward protection for the everyday worker – with strengthened sick pay, enhanced protection from unfair dismissal and rights to guaranteed hours.”

“As with any significant business change, Labour’s announcement has also triggered nervousness amongst employers – especially smaller organisations, whose existing workforce policies will need to be adapted and reshaped, both to comply with the incoming changes, and to reduce any possible financial or operational impact.”

Chris Eldridge, CEO of Robert Walters UK & Ireland said: “The new bill Labour has introduced casts a sturdier safety net for many workers in the UK – especially new parents, those on zero-hours contracts and in their first years of employment. If these measures help to reengage the economically inactive – those who have found it unsustainable to manage both personal and professional duties – then this will be a positive measure all round.”

“By and large the bill puts a lot of confidence back into employees – with day one rights, professionals may feel more secure in taking the leap to make that career change or job switch.”

“With the modern economy in a state of constant flux, it requires businesses and workers alike to retain the ability to pivot and innovate – and criticism has been launched from the business community that the bill seems ‘watered-down’. Failing to fully articulate the ramifications of such laws could mean companies struggle to accurately approximate its business impacts and therefore, can’t modify their operations accordingly.”

“One area which requires the Government to tread carefully is in ensuring the laws don’t disproportionality impact smaller businesses with unnecessary bureaucracy. Existing workforce policies will need to be adapted and reshaped, both to comply with the incoming changes, and to reduce any possible financial or operational impact.”

Chris Eldridge added: “It’s vital that the Government remain mindful of the fact their aim to cut probation periods by more than half has the potential to dent employer’s hiring confidence more widely. It will be interesting to see businesses innovate in response to this – and whilst they are working out the repercussions, we are likely to see an increase in temporary and contract roles as businesses will want more controls on staffing costs. We may also notice an increase in temporary-to-permanent contracts as a way of retaining longer cost control or trial periods.”

“It is also critical that a bill which could have such far-reaching effects on all industries, continues to sound out the full breadth of individuals and organisations that it will impact. Only this action will ensure it continues to hold up a strong economy which works for everyone.”

“Overall – whilst it’s clear Labour’s new bill has been drafted with the best intentions of improving worker engagement, productivity, and overall equality of opportunity – the same careful consideration must be extended to UK businesses. With the plan not set to come into action until 2026, we will continue to keep an ear-to-the-ground for further announcements.”

Robert Walters have been specialising in professional services recruitment for over 40 years. With an active presence in 31 countries globally and a workforce of over 3,000 career experts.

To learn more about Robert Walters, please click here.

To learn more about the Employment Rights Bill, please click here.