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Tag: Labour Market

  • Opinion: On the Workers’ Rights Bill, it all comes down to the detail

    Workers’ Rights Bill, it all comes down to the detail. Finito World

     

    As the new government takes shape, we are beginning to get a sense of the direction and possible meaning of the government. One of the themes that’s already emerging is a split between Rachel Reeves‘ careful approach at the Treasury, and the more gung-ho language coming out of the Deputy PM Angela Rayner’s office.

    Once again, a General Election has proven to be of limited utility when it comes to the crucial question of what an incoming government will actually do. This is certainly the case on the mooted Workers’ Rights Bill.

    For a start, there is little clear language on the flexible working position, and much of the public discourse falsely implies that employees can’t already request flexible working. They can. In addition, employers already have several possible reasons under law to reject the request – this fact also gets very little airtime.

    So what did the Labour Manifesto say? It said that any Starmer administration would look at the possibility of enshrining in law the notion of employees being able to ask for flexible working from day one. So far, there is no indication that the Government will change the position to a four-day working week being the norm or that the reasons to refuse a request will change.  That hasn’t stopped much hyperbole around the four-day working week.

     

    As usual, it will all come down to the detail, and sources say that it is likely that Reeves will get her way, and that little will be done to agitate business. But in the event that the four-day week did happen, there are a range of issues which will need to be looked at including: ensuring adequate client service, adequate staff supervision, ensuring the health and safety and preventing burn out, reducing errors and managing asynchronised working.

     

    Where the government looks set to be more radical is on the question of unfair dismissal. If it becomes possible to claim this much earlier during the cycle of employment, then businesses may have a genuine headache when it comes to avoiding claims. It will certainly increase the pressure on businesses to have a fair reason and follow a fair process to dismiss employees. The likely result is cost to business – again, something which Reeves’ language would suggest she wouldn’t like to see.

     

    Melanie Stancliffe of Cripps tells us: “We expect an explosion of claims – the previous increase in the qualifying period for unfair dismissal claims shrank claims (and raised access to justice issues).” That sounds like something which may alienate the City.

     

    This brings us to another likely result of the legislation. “Companies need change contracts and policies when the detail is known. They will need to implement the policies, train on them, anticipate and manage claims effectively, change business practices.”

     

    It is early days and the detail on Workers’ Rights policy may change things. But what won’t change is that Labour is already at loggerheads as to precisely the sort of government it wants to be.

     

     

     

     

  • Latest figures show continued labour market recovery from pandemic

    The latest ONS labour market figures show a general recovery, with employment increasing slightly, and unemployment decreasing. Average total pay also increased, growing 4.8% between November 2021 and January 2022.
    Joanne Frew, who is Head of Employment at the global legal business DWF, explains how the labour market is holding on.
    “The latest ONS labour market figures show a continued recovery of the market.  The highlights for the period between November 2021 and January 2022 show an estimated UK employment rate of 75.6%, 0.1% higher than the previous quarter. The UK unemployment rate was estimated at 3.9%, 0.2% lower than the previous quarter and significantly returning to pre-pandemic levels. The figures represent a relatively challenging period in the journey of the pandemic with the Coronavirus Job Retention Scheme closed and the Omicron variant leading to tighter restrictions. The labour market has yet again demonstrated its resilience,” Frew says.

    As we have seen with the pandemic, world events have a massive effect on the labour market. Thankfully, Covid-19 vaccinations have proved effective even in times of increased case numbers. Frew explains how other world events, such the war in Ukraine, could also have an effect even if the downturn caused by the pandemic is mostly over.
    “Although there are some peaks in the number of people contracting Covid-19 across the UK, hospital number remain relatively low. As far as the impact of Covid is concerned, as we adapt to the next phase of living with Covid we would expect the labour market to remain stable in the short to medium term,” Frew says, “However, the war in Ukraine and subsequent potential increases in costs of material may yet have an impact on the UK labour market and there could be more challenging times ahead.”

    While the labour market continues to show signs of recovery, job vacancies have still risen to record heights, reaching 1,318,000 in February of 2022. Frew explains how employers are facing this challenge.

    “For now, many employers are taking the opportunity to consider the next step out of the pandemic carefully as restrictions are eased and there is a move to personal responsibility.  A recent survey from the Chartered Management Institute found that 84% of firms had adopted hybrid working.  With retention and recruitment difficulties continuing, employers are having to think of new and innovative ways to attract the best talent, as well as the more traditional route of increased pay.”

    For now, the recovery continues, and the upward trend shows no sign of stopping. The impact of the pandemic is slowly coming to a halt, but as we have seen, new challenges can often be unpredictable.