Employment Rights Bill sparks debate, ahead of Autumn Budget

17/10/2024

The Employment Rights Bill, referred to by some as the biggest upgrade to workers’ rights in a generation, introduces 28 separate reforms.

Last Thursday’s announcement primarily reiterated previously disclosed aspects of the Bill, without providing significant new information.

This week, the Government issued an additional statement regarding a potential increase in National Insurance tax for employers.

This change could potentially impact financial budgets, employee wages, and consumer prices.A recent survey conducted by Robert Walters indicates that the Bill might increase the likelihood of job-seeking for just over two-fifths of UK professionals.

The survey also reveals that about a third of UK employers express uncertainty about the new laws’ impact on their operations and indicate a need for further clarification.

Approximately a fifth of employers suggest they may adjust their hiring strategies to focus more on temporary and contract professionals.

In contrast, a quarter believe the Bill will have little effect on their hiring practices.

Richard Harris, Chief Legal Officer at Robert Walters: “The Government’s employment law overhaul is being touted as the most transformative in a generation – and for good reason. It’s geared towards protecting what Labour often calls “working people” over “corporate elites”.

However, make no mistake—it will impact nearly every company.

“Understandably, it’s caused some worries for business. However, with the benefits for wider society, industry bodies and corporations may be tempered in their public stances on these concerns. It will be fascinating to see how consultations on the details play out.

“Certainly, smaller businesses and start-ups are more exposed to dealing with complexity, compliance costs and impact of things going wrong.”

Chris Eldridge, CEO of Robert Walters UK and Ireland: “Companies across the UK will be forced to adapt and innovate in response to the Bill.

“Whilst the longer-term repercussions are considered, we are likely to witness an increase in temporary and contract roles, as they look to exert more controls over staffing costs.

“We may also notice a more specific increase in temporary-to-permanent contracts implemented as a technique by employers looking to retain longer cost control or trial periods.

“With the Bill not set to come into effect until at least 2026, and the budget announcement mere weeks away, we will continue to keep an ear-to-the-ground for further announcements.”

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