After the recent King’s Speech and Government Announcement on employment rights, there has been lots of discussion about how this will impact Recruitment, and Payroll.
This change presents both an opportunity and a challenge for recruitment agencies and HR professionals. With one of the biggest changes being the introduction of ‘day one’ employment rights and the potential removal of the unfair dismissal qualifying period.
Keep reading our article to explore what this means for you.
What are the Key Changes Recruiters should expect?
One of the biggest proposed changes is eliminating the current two-year qualifying period for unfair dismissal claims. This would be a huge revamp to the current UK employment policy.
The current new deal also includes changes like enhancing statutory sick pay and parental leave. However, the spotlight is undoubtedly on the government’s plan to introduce ‘day one’ rights.
All of this has currently been discussed by the King, and the Labour Government, but you can expect final confirmation on all of these changes on the 31st of October, when the Autumn Statement is realised.
What is the Impact for Recruitment Agencies?
Recruiters and HR professionals know that stability is crucial for employers. The current two-year qualifying period has provided a buffer, allowing both employers and employees to assess how job fit candidates are.
With this removal of this two-year period, recruiters must brace for a landscape where probation periods play a more pivotal role. This change emphasizes the need for updated contracts, improved recruitment processes, and a robust dispute resolution framework.
What’s the General Consensus between Recruiters and Employers?
A recent CIPD survey found that 46% of employers prefer maintaining the existing two-year qualifying period, while 39% are open to a shorter timeframe. This indicates that there might be room for compromise in the actual implementation.
However, 21% of employers express concerns about managing employee performance effectively under the new rules. While, 15% worry about an increased reliance on temporary workers
What do Recruiters need to do?
The takeaway for Recruiters here is clear. Recruiters must adapt. Adapt their processes, their policy, and even review their preferred and approved supplier list.
The right Umbrella Partner will help you as a recruiter, offering solutions and helping you mitigate risk when it comes to working with candidates with Day 1 employment rights.
The Government’s commitment to working closely with businesses and trade unions is encouraging. It’s a signal that this new policy will be somewhat flexible, and not just work in the favour of the employee. Some consultations have already taken place to ensure any new policies are fair for recruitment agencies and employers.
In conclusion, while the proposed changes bring challenges, they also offer opportunities for recruiters to review their current operations, PSL, and ASL. Recruiters who adapt quickly and stay up to date with these changes will not only remain compliant but also become a more attractive recruiter to work with.