Stuart Neilson, Employment partner at Pinsent Masons, comments: “The Government has made great play over the last few years of its move to simplify regulation in the labour market and incentivise employers to employ more people with a reduction in red-tape.
Mr Neilson continued: “However, announcements in the Queen’s Speech show that the Government is not averse to a little tighter regulation around low paid workers. Proposals to crack down harder on those who abuse the National Minimum Wage rules and to outlaw certain abuses in the use of zero-hours contracts have been put forward. Combined with recent changes to the tax rules that apply to agency workers these changes represent a clear attempt by the Government to tighten up regulation of low paid and casual work – if the changes crack down on some of the abuses of recent years then they are to be welcomed.”
“For those sectors where casual employment may be prevalent – such as agriculture and construction – reputable employers will welcome rules to enforce a level playing field but will be concerned about whether the resources exist to enforce new regulation – furthermore, new regulation could impose greater compliance costs on business.”