Government’s proposals could put firms off hiring temporary workers, says REC CEO

Mr Carberry told The Yorkshire Post: "The Employment Rights Act is a sweeping piece of legislation that Labour has a manifesto commitment to implement. There are issues with some of the detail. The UK is not like the US, business in general is not anti trade unions. However, under the current proposals there are penalties for small employers who don't allow their staff weekly access to trade unions, which is potentially very costly and disruptive. We want to see pragmatism regarding this legislation.”

He continued: “The big risk with the Government’s proposals is that they put firms off hiring temporary workers, which is bad news for young workers and others wanting to make their way into the jobs market. Firms who reduce temp hiring are likely to look at overtime and offshoring options instead. The best thing would be for the Government to return these proposals – which were always meant to be about protecting those on zero hours contracts who were working many more hours regularly for a long time – to their original conception. That could be done by exempting temp workers, as Ireland did, or by a longer qualifying period than the current few weeks.”

Last month, Mr Carberry revealed he will step down in September to join the Chartered Institute of Personnel and Development (CIPD) as Chief Executive. Mr Carberry said one of the key themes that emerged during his eight years as CEO is "how much what workers want has changed. Not all companies have quite grasped that.

"People want to work in different ways,’’ he said. “People have choices and want to do things in a different way. Too many employers think the labour market works as it did in 2015. They can't hire simply based on the lowest cost. Hiring in the cheapest possible way actually incurs long-term costs because employees move on. The recruitment market has been on a bumpy ride over the last few years. After lockdown ended there was a boom and then a correction. There has been a long recruitment slowdown but it feels like we're coming out of it now.”

Mr Carberry said he believed Mr Burnham's “glass-half-full” view of the economy is helpful.

He added: “Serving as a mayor gives you a better understanding of the local economic ecosystem; you realise that business is society...While he was mayor, Burnham called a meeting with business leaders and told them they were critical to everything he wanted to achieve in Manchester. In general, the labour market has been picking up.”

A Government spokesperson said: "The UK's framework for industrial relations is outdated. That’s why we’re ushering in a new era working together with employers and unions. We are not banning temporary work or fixed term contracts. We are also consulting on zero hours contracts, including the right to guaranteed hours, to give businesses a chance to have their say."

The spokesman stressed that the Government was consulting on temporary work and how businesses affected by seasonal demand will adapt to the zero hours reforms.

When the zero hours reforms come into force, employers will still be able to engage workers on limited term contracts or make a guaranteed hours offer in the form of a limited term contract provided it is considered ‘reasonable’ to do so, the spokesman added.

“It is ‘reasonable’ if the worker is hired to perform a specific task, to work until the end of a specific event, or for another case of ‘temporary need’ that will be specified in regulations.”  The Government says its Employment Rights Act will bring relations between trade unions and businesses into the 21st century, “helping achieve business growth, secure employment and increasing workplace productivity by resolving disputes sooner”.