Angela Rayner says the Employment Rights Bill will bring 'benefits to everyone'. (Image: Getty)
Labour’s incoming worker’s rights bill could leave unprepared firms facing “colossal challenges” and legal action, an industry expert has warned.
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The Employment Rights Bill will ban zero-hours contracts, end policies of fire and re-hire, and make parental leave, flexible working, sick pay and protection from unfair dismissal available from day one.
While deputy prime minister Angela Rayner says it will bring “benefits to everyone” - the new legislation will present “colossal challenges” for unprepared firms, Toma Pagojute, chief HR officer at workforce management firm Quinyx, said.
She warned its impact will be bigger than many retailers realise “until it’s too late”.
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“(It) could have serious consequences for frontline industries if they don’t plan accordingly,” she explained.
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“Companies must be prepared, knowing that some of the new laws, including immediate sick leave, will mean more admin and greater staffing challenges.
“Businesses stand to lose custom if they can’t staff shifts due to increased absences, for example, or they may find themselves facing legal challenges for breaking the new laws, perhaps unknowingly.
She added: “Essentially, companies need to get organised to the hilt - or they will face some colossal challenges over the coming months.”
Quinyx’s annual State of the Frontline Workforce report found that a third of UK frontline staff (33%) have gone into work when ill due to a lack of sick pay.
This rises to 43% of UK hospitality workers.
The introduction of immediate sick pay for all employees could see absences rise significantly, leaving some businesses severely understaffed.
Another element of the bill, dubbed the “right to switch off”, aims to prevent “blurring” between work and home life.
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Quinyx’s data shows 88% of non-office-based UK employees continue to think about work when they’ve clocked off.
Furthermore, 55% of deskless staff use WhatsApp as their primary workplace communication channel to receive messages from bosses, making the ability to switch off when not at work more difficult.
In the hospitality sector, WhatsApp usage between management and employees rises to 75%, the report found.
“There are already data protection implications to consider when using social media, rather than dedicated apps, for work-related messaging. The latter is usually a much safer option for both sides,” she added.
Ms Pagojute says businesses will need clearer guidance to put “flexible working from day one” into practice.
“Our data consistently shows that frontline staff often value flexibility in a role as much as other factors like career progression and salary,” she said.
“However, the bill states the intention to provide flexibility ‘except where it is not reasonably feasible’ – which is ambiguous and open to interpretation.
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“Obviously there are greater logistical considerations for flexibility in industries such as retail and hospitality, but it would help If the government could provide clear examples of where requests may be accepted or denied.
“It will also be interesting to see if – and how - ‘one-sided flexibility’ will be eradicated. While zero hours contracts have been rightly criticised for a lack of worker protection, the so-called gig economy suited some employees.
“I hope the bill will lead to fairer agreements that give everyone – including parents, carers and others with additional responsibilities – true flexibility that works for them.”