‘These changes are not without cost’: UKHospitality responds to Employment Rights Bill

UKHospitality has urged the government to work with the sector on zero hours contracts following the publication of the Employment Rights Bill.

Labour had previously promised in its manifesto that it would implement “landmark reforms” in under 100 days to raise productivity and pay.

The bill, published today, consists of 28 individual employment reforms, including a ban on exploitative zero hours contracts and fire and rehire practices, as well as a strengthening of statutory sick pay.  

The government is also in the process of consulting on a new statutory probation period for companies’ new hires, as well as focusing its efforts on implementing flexible working, addressing gender pay gaps and providing protections against dismissal for pregnant women.

A new Fair Work Agency made up of existing enforcement bodies will be established to support employers who need guidance on how to comply with the law.

Kate Nicholls, chief executive of UKHospitality, said: “One of our primary messages during a long period of dialogue with Labour in opposition and in government was to recognise the importance of flexibility to both workers and businesses, and I’m pleased it has done that today.

“However, these changes are not without cost. That’s why the government should take its time to get the details right, through close consultation with businesses to avoid unintended consequences.”

She stressed the importance of zero hours contracts to the hospitality sector, which is the desired contract for 90% of people on them, according to a House of Commons library research briefing.

“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,” she added.

The government’s current stance is based on research that has suggested 84% of zero hours workers would rather have guaranteed hours.

These individuals, as well as those on low hours contracts, will now receive the right to a guaranteed hours contract if they work regular hours over a defined period.

Deputy prime minister Angela Rayner said: “The UK’s out-of-date employment laws are holding our country back and failing business and workers alike. Our plans to make work pay will deliver security in work as the foundation for boosting productivity and growing our economy to make working people better off and realise our potential.”

Business secretary Jonathan Reynolds added: “The best employers know that employees are more productive when they are happy at work. That is why it’s vital to give employers the flexibility they need to grow while ending unscrupulous and unfair practices.”

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