Recent labour market related submissions

Making Work Pay: the application of zero hours contracts measures to agency workers

The government is introducing measures to tackle one-sided flexibility in zero-hours contracts through a right to guaranteed hours with a contract that reflects the number of hours regularly worked, and a right to reasonable notice of shifts with payment for shifts cancelled or curtailed at short notice. The government is seeking views on the application of these measures to agency workers.

While we understand the desire to protect workers from situations where businesses are bringing in agency workers instead of directly hired staff to make up the bulk of the workforce, the proposals seem based on an arguably oversimplified view of the existing labour market and/or don’t fully take into account a range of other issues. LITRG have written to the policy team to offer a meeting to share our knowledge of the labour market, the dynamics and incentives at play, and in particular, the potential tax consequences of the proposals, which could greatly impact the success of the policy.

Making Work Pay: Strengthening Statutory Sick Pay

The government intend to remove the Lower Earnings Limit to ensure that all employees have access to Statutory Sick Pay (SSP) and remove the waiting period to make it available from day one. This consultation is on the percentage replacement rate for those earning below the current rate of SSP.

While we offer no views on the replacement rate, we have written to the policy team to reiterate some of the points made in our ‘Health is everyone’s business: proposals to reduce ill health-related job loss’ consultation response from 2019 – that it is important to ensure that the SSP system is balanced and sustainable, addresses the needs of all workers and that there is perhaps a requirement for a wider debate.

Labour Market Enforcement Strategy 2025 to 2026: call for evidence

On 10 October 2024, the government introduced an Employment Rights Bill to parliament, including the establishment of a Fair Work Agency (FWA). Given the move towards the FWA this call for evidence is very much focused on what the enforcement bodies need to be doing to prepare for the transition and to help ensure the FWA is a success.

In our letter to the Director of Labour Market Enforcement, we explain that false self-employment is already an insidious issue within our labour market and looks set to get worse, given it is a device that can help engagers displace increasing costs and obligations, such as those arising from the recent Budget announcements and Employment Rights Bill. Unless the false self-employment ‘loophole’ is closed down, there is a real risk that the planned upgrade to workers’ rights will not materialise. 

We put forward our view that state enforcement of employment status could produce a step change in outcomes for workers and should feature as a specific responsibility of the new FWA. We set out a few thoughts around the practicalities of expanding the FWA remit in this way and suggest that a full consultation be launched to gather views and insights, in order that the most effective and workable function possible, can be designed.