Hospitality sector braces for 'ambitious employment reforms'

By James Lawrence

Published: 27 November, 2024

A number of significant changes to the UK's employment landscape, including proposals to get people back into work and training, has received a mixed response from key stakeholders in the hospitality industry.

Responding to the White Paper released yesterday (26 November), Jake Shepherd, senior researcher at the Social Market Foundation, said: “I welcome today's announcement of ambitious employment reforms, especially in reference to the introduction of more localised careers support through Job Centres, something that we echo in our upcoming report on apprenticeships".

The drinks business report also discussed removing “health-related barriers to work”, while promoting a “Youth Guarantee to support young people into training and work”.

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However, Shepherd expressed concerns about “the government’s rhetoric and its approach to sanctions”.

He added: “While the Prime Minister has promised to end the cycle of 'blaming and shaming', warnings of 'clear consequences' for those who don’t seek support could perpetuate the stigma surrounding welfare recipients.”

Meanwhile, Allen Simpson, deputy chief executive of UKHospitality, gave evidence to the Employment Rights Bill Committee this week.

Discussing the legislation with senior parliamentarians, Simpson lobbied for "longer reference periods to determine the hours offered in a contract offer to someone working on a zero hours contract".

The deputy chief executive also requested clarity for businesses around notice or cancellation of shifts “to reflect the practicalities of hospitality”.

He commented: “The government has listened to UKHospitality 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. 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."

Simpson also reiterated his grave concerns about the rise in NI and National Minimum Wage, observing that the sector’s ability to support employment was likely to be significantly eroded “by £3.4 billion in costs the Budget inflicted on hospitality".

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

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