Industry reacts to new Employment Rights Bill

Trade bodies from across the pub, bar and nightlife industries have reacted to the government's new Employment Rights Bill, which was unveiled on 10 October 2024.

Key areas affecting the on-trade are changes to zero hour contracts, day-one rights for unfair dismissal, enhanced protections for parental leave and sick pay, and a statutory probation period for new hires.

The bill is also seeking to remove the age bands in the minimum wage, which has caused concern for the industry. 

Upon revealing its changes, the government said that "getting the labour market moving again is essential to economic growth" with one in five UK businesses with more than 10 employees reporting staff shortages.

"Flexibility, for workers and businesses alike, is key to answering this challenge and is at the heart of the legislation to upgrade the law to ensure it is fit for modern life and a modern economy," it says. 

More detail

The existing two-year qualifying period for protections from unfair dismissal will be removed. The government will also consult on a new statutory probation period for companies’ new hires. This aims to allow businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers.  

In total, the bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices, to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in. 

Flexible working will be made the default where practical. Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers. 

A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law. 

Industry reaction

"These changes are not without cost, says Kate Nicholls, CEO of UKHospitality. "That’s why the government should take its time to get the details right, through close consultation with businesses to avoid unintended consequences. Rushing to introduce measures too quickly would be the wrong thing to do and would increase the chances of inflicting damage to sectors like hospitality, an employer of 3.5m people and a provider of some of the most flexible roles in the economy.

"Protecting the right for employees to access zero hours contracts when they want them, instead of an outright ban, is a good example of how working together can avoid those potential pitfalls but still eliminate exploitative practices. Zero hours contracts are the desired contract for 90% of people on them, who actively seek the flexibility to accommodate their lives as working parents, carers, students and many more who lead busy lives.

"Its plans for day one rights also strike the right balance, with a statutory probation period allowing time for both employer and employee to determine if the job is a good fit. Ultimately, as it has done so far, working with business groups and unions to strike a balance for the good of businesses and workers alike will be critical to the success of this Bill. We look forward to working with the government as it takes forward these plans."

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