The Employment Rights Bill proposes to ban zero-hours contracts, end fire and rehire, and introduce basic employment rights from day one such as paternity and parental leave, and protection from unfair dismissal.
The Bill will also bring in a new statutory probation period for companies’ new hires to allow for a proper assessment of an employee’s suitability, for which the Government preference is nine months. The proposed Bill also suggests that flexible working be the default where practical.
The improvement to employment conditions has been welcomed by trade associations.
While being positive about the proposals Balwinder Dhoot, director of Industrial Growth and Sustainability at The Food & Drink Federation (FDF) said it was vital that any changes to employment law are properly considered, with adequate time and support for businesses, before being implemented.
Dhoot said: “We hope the government continues to work with industry as they consult on these proposals, particularly to understand the impact on small and medium sized businesses which represent some 97% of the UK’s 12,500 food and drink manufacturing businesses. We look forward to partnering with government to determine the best way to implement these changes so that we can continue to attract the best talent to our industry.”
Meanwhile Rod Addy, director general at the Provision Trade Federation (PTF), said: “Few would argue with the principles behind many of the provisions in this bill. Improving staff treatment clearly helps to boost productivity.”
He added: “A number of consultations will be held in coming months on other provisions of the Bill, including on a new statutory probation period for new hires. It is also proposed to set up a new Fair Work Agency bringing together existing enforcement bodies in these areas.”
He said that PTF would be following developments, informing members and seeking views as necessary during this process, which is expected to take up to a year to complete.
The British Meat Processors Association (BMPA) highlighted the struggle to recruit workers that is faced by the meat sector despite offering attractive packages which include advantages like flexible working.
Nan Jones, BMPA’s technical policy manager, said: “With such a large number of working-age people in the UK who are currently economically inactive, and therefore not available to employers, the new Employment Rights Bill will hopefully pave the way for some to re-enter the workforce.”
Jones said it is important that any new provisions are applied equally across the board to create a level playing field and equal competition amongst companies and across industries.
“Anything that is unevenly applied risks distorting the employment landscape and creating worker shortages for some companies and an oversupply for others,” Jones added.
“While it’s difficult at this stage to predict the cost implications of the new Bill, we’d also like government to have one eye on how the new legislation will impact costs and therefore the competitiveness of British companies.”
In other news, the Campaign for Real Ale has appointed Gillian Hough as its new vice chair.