The Employment Rights Bill: Flexibility and Worker Protections – A Double-Edged Sword for Businesses? Its implications for flexible working in the UK

The announcement of the Employment Rights Bill on Thursday 10th October marked an important step towards expanding worker protections and promoting flexible working arrangements in the UK. While the Bill introduces several new rights for employees, experts in the recruitment and resourcing industries are weighing in on whether these changes will bring significant impact to businesses.

Louise Shaw, managing director of resourcing transformation expert Omni RMS, offers her perspective on the Bill's potential effects, particularly on businesses that have already integrated flexible working options into their operations.

Flexible working: A move already in progress
One of the key changes in the Employment Rights Bill is the right to request flexible working hours from day one of employment. This is being framed as a win for workers, but according to Shaw, many businesses are already offering flexibility in response to employee demand and competitive market forces. Shaw points to findings from the recent Resourcing and Talent Planning report, produced in conjunction with the Chartered Institite of Personnel and Development (CIPD), to support her argument. The report revealed that almost three-quarters (74%) of UK employers are currently advertising certain roles as open to flexible working options.

"Any move to protect workers and allow for flexible working is welcome, particularly in such a skills-short market," Shaw notes. However, she suggests that the plans for increased flexibility may not be a game-changer for many companies. "The plans for flexibility aren't actually too different from what many are already offering."

For example, in frontline and non-office roles, 57% of employers surveyed already offer some form of flexible working. This underscores the fact that many businesses have integrated flexibility into their hiring practices as a standard offering. The numbers also show that businesses see flexibility as a tool to attract and retain talent, with 71% of respondents acknowledging that offering home or hybrid working has improved their ability to bring in skilled employees and reduce turnover.

Hybrid working as a competitive edge
While some businesses have called for a return to more in-office work, Shaw emphasises that this does not equate to a lack of flexibility. "Yes, there are some organisations urging people back into the office more often, however that doesn't necessarily mean that they aren't being flexible," she says. Many companies are offering hybrid models that balance in-office presence with remote work.

The trend toward hybrid working shows no signs of slowing down, as businesses recognize that this approach can boost both attraction and retention of talent. Shaw argues that for companies already implementing flexible work models, the Employment Rights Bill is unlikely to introduce significant changes. "The plans to give individuals greater rights for flexible working from day one are unlikely to result in much change for most."

Unintended consequences of strengthened worker protections?
While the focus on flexible working may not shift the landscape dramatically, the Employment Rights Bill also introduces measures designed to strengthen worker protections, notably by removing the two-year qualifying period for unfair dismissal claims. This move is intended to give employees greater job security, but Shaw warns that it could result in unintended consequences for both businesses and workers.

"UK employment protection has traditionally been weak compared to other OECD countries, but the UK performs relatively well on employment outcomes, including low unemployment rates and a high percentage of permanent roles," Shaw observes. The removal of the two-year threshold for unfair dismissal could prompt employers to reconsider their hiring practices, potentially leading to a greater reliance on temporary contracts or more stringent vetting processes for new hires.

Shaw is concerned that this change might disproportionately affect younger workers or those with limited experience, as employers could become more cautious about offering permanent roles. "The Bill could lead to unintended consequences, such as fewer opportunities for young workers or those lacking experience," she explains. Businesses might rely more heavily on the "temp-to-perm" model, where employees are initially hired on temporary contracts with the possibility of transitioning to permanent roles later. While this offers a pathway to permanent employment, it also risks increasing job insecurity.

Focus on quality over quantity
Despite the potential challenges, Shaw remains optimistic about the overall direction of the Employment Rights Bill. She sees it as a positive step toward building a more sustainable and resilient workforce but stresses that its success will depend on how it is implemented. "Overall, the announcement today does signal a positive and proactive move towards the creation of a more sustainable and resilient workforce, but we are keen to see this focus on quality over quantity."

Shaw emphasises that the consultation period accompanying the Bill will be crucial. This phase allows for input from both businesses and employment communities, giving policymakers the opportunity to fine-tune the legislation to avoid unintended negative impacts. "The impact of these planned reforms will be driven by how they are implemented, and the consultation period will be a prime opportunity for the voice of the business and employment communities to be heard."

The future of work: Navigating a new reality
The Employment Rights Bill arrives at a critical time, as businesses continue to adapt to the long-term changes brought about by the pandemic. The push for greater flexibility and stronger worker protections reflects shifting attitudes about work and employee rights, but Shaw's insights reveal that many businesses have already embraced much of what the Bill seeks to legislate.

Ultimately, the Bill may reinforce existing trends rather than spark dramatic changes, especially for businesses already offering flexible arrangements. However, the removal of the two-year unfair dismissal qualifying period presents new challenges that could require careful navigation to avoid inadvertently reducing job opportunities or increasing reliance on temporary contracts.

As the Employment Rights Bill progresses, the real test will be in how it balances the needs of both workers and employers in a rapidly evolving labour market. With the right focus on implementation and quality outcomes, the Bill could help create a more resilient workforce while maintaining the flexibility businesses need to thrive.