The Employment Rights Bill: Unintended Consequences?

Earlier this year, I wrote about proposed government reforms designed to make work pay by enhancing the rights of workers, including those employed on zero-hours contracts and via agencies. The Employment Rights Bill, currently passing through the House of Lords, is the vehicle through which the government seeks to enshrine these new rights into law. 

 Strong rights for workers are, of course, a good thing. However, as UKWA made clear in our response to the government’s consultation on the matter, we find many unintended consequences arising from these reforms which disproportionately impact the warehousing and logistics sector. 

 We continue to argue against proposals to legally enforce a contracted offer of guaranteed work to employees after just twelve weeks. Twelve weeks is simply not long enough to account for the seasonal variations and demand-driven volatility which characterises the warehousing sector. Whilst we sympathise with the government’s aims, this proposal would inadvertently lead to increased redundancies and a reduction in hiring rate due to bureaucratic restraints.  We argue that the minimum qualifying period should be extended to nine-to-twelve months to account for this. 

During the passage of a Bill into UK law, the House of Lords provides a crucial function. Peers will examine Bills which have been introduced by the government via the House of Commons, scrutinising details to identify potential issues and tabling amendments to improve the Bill. Whilst the House of Lords cannot directly block legislation, this power of scrutiny plays a vital role to hold the government to account throughout the legislative process. 

 Therefore, through our CEO Clare Bottle, UKWA has written personally to all Peers involved in scrutinising the Employment Rights Bill, highlighting the unintended consequences of these reforms for the warehousing sector and sharing our recommendations for improvements. 

 UKWA will continue to track the Bill and engage with parliamentarians to make the case for reforms targeted at benefitting our members and the wider sector. If you have any questions or thoughts around the Employment Rights Bill, please contact policy@ukwa.org.uk.  

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