On Tuesday 12th November 2024, MAYACHI joined RecruiterZone for a Crowdcast session regarding the upcoming changes proposed in The Employment Rights Bill. This session was aimed at recruitment agencies to help them understand what is changing, when they would come into force and what impact this will have on the industry.
The Crowdcast started at 2 pm and was led by Louise Triance from RecruiterZone and involved Simon Whitehead from Brabners, Catherine O’Donoghue from HR Champions and Vincent Seddon from Simplicity to give some insights and answer questions from recruitment agency directors and various industry suppliers who were in attendance.
There were a number of subjects discussed which are summarised below:
Overview of the Employment Rights Bill
The Employment Rights Bill is the biggest change to employment law in a generation, moving the pendulum back towards more balanced rights between employers and employees. Key changes include ending exploitative zero-hour contracts, introducing day one unfair dismissal rights, a single enforcement body, and banning fire and rehire practices. However, the detailed regulations are yet to be released, and the changes will not come into effect until 2026, allowing time for consultation and preparation.
Key Changes in the Employment Rights Bill
The Employment Rights Bill proposes several key changes, including: – Enhancing trade union collective consultation and giving more voice to collective bargaining – Ending exploitative zero-hour contracts and introducing predictable hours contracts – Providing day one unfair dismissal rights – Establishing a single enforcement body (the “Fair Work Agency”) – Banning the practice of “fire and rehire” The detailed regulations are still to be released, with the changes not taking effect until 2026, allowing time for consultation and implementation.
Challenges for the Recruitment Industry
The recruitment industry faces several key challenges from the Employment Rights Bill: – Managing the impact of day one unfair dismissal rights, which could make employers more cautious in hiring – Adapting to changes around zero-hour and predictable hours contracts, which could significantly impact temporary worker arrangements – Navigating issues around transfer fees and liability for guaranteed hours in agency work – Potential impact on diversity and inclusion efforts if employers revert to more traditional hiring profiles Recruitment agencies will need to actively engage in consultations and work closely with clients to prepare for these changes.
Impact of Predicable Hours and Cancelation Compensation
The Employment Rights Bill proposes that after 12 weeks on an assignment, workers will automatically be given the hours they have worked. There is also a consultation on how to apply these “predictable hours” changes to agency workers, and who will be responsible for guaranteeing the hours. The bill also covers cancelation compensation, where employers may have to pay workers if shifts are cancelled at short notice. The details of these provisions are still to be determined through the consultation process.
Day One Rights for Unfair Dismissal Claims
The Employment Rights Bill proposes introducing day one unfair dismissal rights, removing the current two-year qualifying period. This could make employers more cautious in hiring, as they will need to follow a full performance management process to dismiss someone after the initial 9-month probationary period. Recruitment agencies will need to work closely with clients to ensure successful placements, focusing on thorough induction, probation, and cultural fit, to avoid potential unfair dismissal claims.
Potential Increase in Agency Work and Compliance
The panel discussed the potential for an increase in agency work, as employers may be more inclined to use agency workers to avoid the new day one unfair dismissal rights. However, agencies may also move towards more employment-based models rather than temporary worker status to sidestep some of the new requirements around predictable hours and cancelation compensation. Increased compliance standards were also seen as a potential benefit, as the changes could drive out non-compliant providers and promote agencies focused on best practices. Overall, the recruitment industry will need to adapt its models and work closely with clients to navigate the evolving regulatory landscape.
Support for Recruitment Agencies
Recruitment agencies are advised to stay informed and engaged through industry bodies and support networks to have their voices heard during the consultation process. Agencies may also find it beneficial to conduct a SWOT analysis to identify their strengths, weaknesses, opportunities and threats, and develop a strategic roadmap to prepare for the changes. The panel highlighted potential benefits for the recruitment industry, including increased compliance standards, more temp-to-perm opportunities, and improved candidate experience. The key is for agencies to approach the changes with an open mindset, collaborate with clients, and leverage available support to navigate the upcoming employment law reforms.
This interactive event was enjoyed by all attendees with the panel giving some great insights whilst answering all questions posed regarding the changes in the legislation.
