The government has tabled amendments to the Employment Rights Bill following weeks of consultation and responses from parties including business groups and trade unions.
The bill, which covers area such as zero-hour contracts, sick pay, and consultations on redundancies, has been welcomed by unions. It will return to the House of Commons next week.
Kate Nicholls, chief executive of UKHospitality, said: “The business world has fundamentally changed since the publication of the Employment Rights Bill, with significant increases to employer NICs upending the finances of hospitality businesses. Everything must now be viewed in that context.
“We understand the government’s objectives with this legislation, but how it achieves those goals must be done in a way that doesn’t damage jobs, businesses, and growth.”
She added: “Some of the changes announced offer practical clarifications on how new regulations will work, but it’s still the case that there is much unknown about how this legislation will work in practice, a lack of detail on several key issues, and the scale of the cost these changes will bring.
“With substantial consultation still to come on major parts of the legislation, it’s critical that the government continues to work with us to answer these questions and get the detail right in a way that benefits both businesses and team members.”
A spokesperson for the British Beer & Pub Association said: “While there are some welcome announcements, there remain legitimate concerns around many aspects of the Bill.
“Mandating that those who may want flexible roles have to be offered fixed hours, including agency staff, will mean businesses affected by seasonal demand won’t always be able to offer them work. This will cut off opportunities for many who may want short-term work and deny them the chance to work as they please in a sector they’re interested in.
“The beer and pub sector supports more than a million jobs, and we’ll continue to work with Government to ensure that new rules don’t inadvertently penalise our fantastic workforce and risk undermining growth.”
