NIC rise will have bigger impact than changes to Employment Rights Bill

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Practical issues: UKH gives evidence the Employment Rights Bill committee (Credit: Getty/SolStock)

Increased Employer National Insurance Contributions (NIC) will “immediately impact” employment more than changes to the Employment Rights Bill, one trade body has warned.

Last month the Government introduced 28 new measures to the bill in a bid to tackle poor working conditions.

Giving evidence to the Employment Rights Bill committee this week, UKHospitality (UKH) deputy chief executive Allen Simpson stressed the need for the Government to get the legislation right for hospitality businesses.

He said: “I was pleased to give evidence to the committee today and share the extensive feedback we’ve had from members about these changes to employment rights.

Flexible working

“Importantly, the Government has listened to UKH and ensured the legislation does enable employees to continue to have the right to flexible working. That is critical for both our team members and businesses.

“However, there are very practical issues that it needs to get right for it to work for hospitality.”

Simpson called for longer reference periods to determine the hours offered in zero-hour contracts, adding the current proposal of 12 weeks was “too short to accurately reflect typical hours”, particularly during peak seasons, such as summer or Christmas.

In addition, the deputy chief executive called for “clarity” for businesses around notice or cancellation of shifts to “reflect the practicalities for hospitality”.

For example, team members agreeing to swap shifts at late notice, or a venue trying to stand up a team at late notice to cater for a large booking.

Larger issues

“Issues like the reference periods used for contracts and how exactly we provide notice for shifts may seem technical, but they’re integral to how hospitality runs on a day-to-day basis,” he continued.

Though Simpson warned the cost increases introduced in the autumn Budget presented a “much lager issue” for the sector.

He continued: “The larger issue is that by the time these changes come into effect, the sector’s ability to support employment is likely to have been significantly eroded by £3.4bn in costs inflicted on hospitality by the Budget.

“Immediately, these costs will have a much larger impact on employment than these changes.

“Not only does the Government need to get this bill right, but it needs to do right by the hospitality businesses that employ 3.5m people and urgently address the upcoming changes to employer NICs.”