The UK government has released a package of evidence relating to reforms of zero hours and similar contracts.
The Recruitment and Employment Confederation (REC) has responded to this, raising concerns over how this could financially affect businesses.
REC: A Better Approach is Possible
Neil Carberry, Chief Executive of the REC, said, “We believe this assessment by the government of its reforms around flexible work undercounts the compliance and process costs businesses will face.
“Even so, a potential £2.9bn addition to the rapidly rising cost of employment will only make our youth unemployment issues worse. Government’s data suggests it will cost employers up to £8 million every day, or roughly the annual wage bill for 137,000 full-time workers between 18 and 20 years old on national minimum wage.”
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Carberry added, “It is time to think again. A better approach is possible – one that supports growth and employment opportunities. The gold-plated proposals in the Employment Rights Act lack the practicality of other options – like that suggested by the Low Pay Commission before the pandemic.
“A return to pragmatism – with employers in the room, not frozen out – is now needed. The ultimate losers in getting this wrong will not be businesses – who have other options – but workers themselves. At the very least, genuinely temporary workers must be excluded, to avoid firms stopping the creation of temporary work.”
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