Ahead of the consultation window closing, the BBPA expressed concern the changes outlined in the Employment Rights Bill could lead to reduced staff recruitment, slower wage growth and reduced investment in the sector.
To combat this, the association urged the Government to avoid implementing new regulations that could essentially harm UK workers.
BBPA director of strategy and policy Andrew Tighe said: “Our sector’s workers are invaluable and, of course, we want them to remain valued and treated fairly.
“However, we are concerned the proposals could backfire as they are likely to have inadvertent and unfortunate consequences which could hurt workers.”
Significant contribution
The BBPA highlighted the brewing and pub industry makes a significant contribution to both the local and national economy, generating more than £34bn for the economy and simultaneously supporting over one million jobs, the sector also generates £18bn per year in tax revenues.
In addition, the BBPA stressed the importance of flexibility for workers in the industry, noting that the sector is also significantly affected by seasonal demand.
The association suggested the changes outlined in the Employment Rights Bill were “destined to result in a framework of requirements that are more likely to stifle, rather than promote, growth.”
Tighe added: “We fully back the Government’s growth mission and know it values our sector which is why we are warning if we are to continue investing and supporting jobs then businesses must be viable.
“We are calling on Government to address businesses’ concerns so that we continue to be the backbone of the UK’s job market and carry on employing so many fantastic people.”
The BBPA also called for Parliament to work with businesses to understand the potential impact of the proposed changes, allowing them to retain the flexibility they need to operate successfully.
It added it was “essential” for the Government to rethink the bill’s proposals in conjunction with the sector so that the brewing and pub industry can continue to contribute to the economy and as a result, bolster the UK job market.
Moreover, UKH also called for the Government to ensure the bill “reflected the unique requirements” of the sector.
Valued sector
The trade body submitted responses to each consultation, building on the evidence it provided to the Employment Rights Public Bill Committee last week when it shared operator feedback.
In its written submissions UKH highlighted the proposed changes to statutory sick pay would have the “unintended consequence” of incentivising absenteeism.
UKH added it supported the removal of the Lower Earnings Limit at a proposed rate of 50% of the individual’s earnings.
However, the trade body said it did not agree that agency workers who have worked regularly for a business should be given guaranteed hours contracts, describing the proposal as “impractical and unworkable”.
UKH chief executive Kate Nicholls said: “We are pleased to provide our recommendations to the Government on its first set of consultations on its Employment Rights Bill.
“It’s imperative we continue to work closely with Government on this bill to ensure the resulting legislation is right for hospitality businesses.
“To date, the Government has listened to UKHospitality and ensured the legislation does enable employees to continue to have the right to flexible working, which ensures that as an industry we can support getting those furthest from the labour market into work.”
Though Nicholls added the bill as it stands would present “significant operational challenges” at a “considerable cost” to the sector.
She continued: “By the time these changes come into effect, the sector’s ability to support employment is likely to have already been significantly eroded by £3.4bn in costs the Budget inflicted on hospitality.
“For hospitality businesses to be in a position deliver on the ambitions within the Employment Rights Bill, it’s vital the Government urgently addresses the upcoming changes to employer National Insurance Contributions.”
