What the New Employment Bill Means for Recruiters and Britain’s Workforce:

Earlier this year the King announced a New Deal for Workers in the Uk. This initiative is being driven by the new Labour Government and is set to cause huge changes in the Uk economy. The New Deal aims to ban exploitative practices and enhance employment rights, it’s shaping up to be the most significant legislation in workers’ rights in recent years. The new Employment Rights Bill has been pledged to be delivered within Labour’s first 100 days, you can expect more details in the Autumn Statement, but here is what we already know.

A New Employment Bill, and a Era for Employment Rights

This section of the kings speech started with “My Government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights,” a direct quote from the King. The speech then goes on to detail the government’s mission to create a new partnership between businesses, trade unions, and working people.

Key Highlights of the Employment Rights Bill

Here’s the Gifco overview of the core elements of the Employment Rights Bill and what they entail – a perfect breakdown for Recruiters and People Professionals:

1. Ban on Exploitative Zero-Hour Contracts:

• Workers will have the right to a contract that reflects the number of hours they regularly work.
• Employers must provide reasonable notice for any shift changes, with compensation for cancelled shifts.
• This will end “one-sided” flexibility, ensuring jobs provide baseline security and predictability.

2. Ending ‘Fire and Rehire’ Practices:

• The Bill will reform the law to provide effective remedies against exploitative ‘Fire and Rehire’ tactics.
• This includes replacing the previous government’s inadequate statutory code.

3. Enhanced Parental Leave and Sick Pay:

• Parental leave, sick pay, and protection from unfair dismissal will be available from day one on the job for all workers.
• The Bill will strengthen Statutory Sick Pay by removing the lower earnings limit and waiting period.

4. Flexible Working by Default:

• Flexible working will become the default from day one, with employers required to accommodate this as far as reasonable.

5. Protection for New Mothers:

• It will be unlawful to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances.

6. New Single Enforcement Body:

• A Fair Work Agency will be established to strengthen the enforcement of workplace rights.

7. Fair Pay Agreement:

• A Fair Pay Agreement will be established in the adult social care sector, with potential expansion to other sectors following review.

8. Reinstating the School Support Staff Negotiating Body:

• This body will establish national terms and conditions, career progression routes, and fair pay rates.

9. Updating Trade Union Legislation:

• The Bill will remove unnecessary restrictions on trade union activity and ensure industrial relations are based on good faith negotiation and bargaining.

10. Simplifying Statutory Recognition Processes:

• A regulated route will be introduced to ensure workers and union members have a reasonable right to access a union within workplaces.

What this means for Recruiters?

The introduction of the Employment Rights Bill presents both opportunities and challenges for recruiters and HR professionals. Here are some key takeaways of things you need to keep front of mind:

Enhanced Recruitment Appeals:

Companies that quickly adapt to these new regulations can position themselves as attractive recruitment partners for both candidates and clients.

Compliance Readiness:

Recruitment teams must ensure their policies and practices align with the new regulations to avoid legal issues.

Training and Development:

Organisations may need to invest in additional training for HR and Recruitment teams to effectively implement and manage the new requirements.

Collaborative Opportunities:

The emphasis on working closely with trade unions could hugely impact markets, and the behaviour of candidates, as going into 2025 candidates may have higher expectations from the type of work their doing, and their compensation packages

Want to stay ahead of the market?

The government’s Plan to Make Work Pay underscores a significant shift towards enhanced workers’ rights and a fairer working environment. For HR professionals and recruiters, staying informed and proactive in implementing these changes will be crucial.

Stay informed, stay compliant, and most importantly choose the right partners to work with to get on top, and stay on top, of industry changes and news like this.

Get in touch with Gifco to learn more about the steps we’re talking to ensure we’re doing everything we can to support the recruiters we work with, and their talent pools too.