UKHospitality: Question time

Kate Nicholls, chief executive of UKHospitality, ponders the government’s new employment rights bill.

Questions, questions. The government’s employment rights bill (ERB) has thrown up lots of them – and contract caterers, like thousands of other hospitality businesses, need answers, because the bill is set to have a profound effect on our sector. UKHospitality has drafted a briefing concerning the ERB, summarising the key issues it raises for hospitality, and suggesting questions to be resolved in the course of parliamentary scrutiny.

Part of our industry’s strength is the working flexibility it offers, enabling many in the workforce to fit around other commitments in ways that suit both employer and employee. We recognise, though, that improvements can be made to hospitality’s employment practices, so approach the ERB and wider employment policy with pragmatism.

The big issues for contract caterers, then, are zero-hours contracts and notice of shifts and compensation for cancelled shifts and wages. The government’s proposed ban on zero-hours contracts would give workers the right to move from a flexible contract to a fixed one that reflects average hours worked over a 12-week reference period.

This prompts some important questions. How do you ensure that genuinely casual workers are not caught up in the legislation? Will businesses have to onboard and then release casual workers to avoid offering fixed-hours contracts? What is the process for somebody to refuse a fixed-hours contract and what evidence will a business have to provide to satisfy this? When does the requirement to offer a fixed-hours contract commence?

Like I said, lots of questions.

As for notice of shifts and compensation for cancellation or changes, the bill proposes that those on non-defined contracts will have the right to ‘reasonable’ notice of their shifts. Reasonable is only defined as ‘if it is given less than a specified amount of time before the shift is due to start’. Where shifts are cancelled, moved or curtailed within this time, then the worker is potentially liable for compensation. The legislation refers to a ‘specified amount’ of compensation and undefined time descriptions on the actions.

And there are yet more questions! When will government consult on the appropriate time frames given? Will the government permit shift-swapping where it’s requested by employees? Or will this deter that as workers seek compensation? Can there be mutual agreement between parties to alter shifts without cancellation? What circumstances could allow for a cancelled shift, for example a strike leading to a school closure?

Five more questions there that contract caterers will want answers to, and there are many more on all aspects of the ERB, whether on flexible working, the National Minimum Wage, statutory sick pay, tipping, unfair dismissal and day one rights. And we’re not done, yet.

Other elements of the bill – trade union recognition, protection from sexual harassment, equal pay reporting – trigger further questions; while in the longer-term the government plans to look at single worker status, parental and carers’ leave, the operation of TUPE and health and safety guidelines. Each carry their own set of questions, which UKHospitality will be asking during our ongoing discussions with ministers and officials, informed by the government’s Make Work Pay: Next Steps document and our preliminary analysis of the draft legislation.

On behalf of contract caterers and the rest of hospitality, we’ll be insisting that the measures set out in the ERB are comprehensively consulted upon. That they prioritise growth and high employment levels, all while ensuring a fair balance between employers and employees. That they should avoid unintended consequences. It’s question time.


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