With just 11 weeks to go until the introduction of the new Employment Rights Bill, hailed as the ‘biggest upgrade to workers’ rights in a generation’, bosses are being warned they must get ‘organised to the hilt’ or face a major threat to business performance.

The bill includes a ban on zero-hours contracts and the introduction of flexible working and sick pay from ‘day one’ – but there are warnings that its impact will be bigger than many retailers realise, “until it’s too late”.

Data from its global State of the Frontline Workforce report* – which has annually monitored the attitudes and behaviours of tens of thousands of deskless employees worldwide since 2020 – shows that a third of UK frontline staff (33%) have gone into work when ill due to a lack of sick pay – and this rises to 43% of UK hospitality workers. The introduction of immediate sick pay for all employees could see absences rise significantly, leaving some businesses severely understaffed.

Toma Pagojute from Quinix explains: “The bill is hugely positive news for employees but could have serious consequences for frontline industries if they don’t plan accordingly.

“Many of the changes are long overdue – flexible working for frontline staff has been lacking for years, and it’s shocking that so many have felt under pressure to turn up when ill as they wouldn’t get paid otherwise.

“Yet companies must be prepared, knowing that some of the new laws, including immediate sick leave, will mean more admin and greater staffing challenges. Businesses stand to lose custom if they can’t staff shifts due to increased absences, for example, or they may find themselves facing legal challenges for breaking the new laws, perhaps unknowingly.

“Many elements of the bill may sound daunting, such as the scrapping of the ‘three-tier system’ of employee status and zero hours contracts, and rights from day one – but businesses will be much better positioned to manage the changes if they have the right systems in place ahead of time; relying on archaic admin processes for staff scheduling and compliance is not a good idea. Essentially, companies need to get organised to the hilt – or they will face some colossal challenges over the coming months.”

‘The right to switch off’ – not just for office workers

Another element of the bill, the ‘right to switch off’, aims to prevent ‘blurring’ between work and home life, stopping ‘homes turning into 24/7 offices’. Toma argues: “This sounds like it’s geared more towards office staff, yet it’s a big problem in frontline industries too – employers mustn’t overlook the issue.

“Although they might not physically take their work home, our data shows 88% of non-office-based UK employees continue to think about work when they’ve clocked off. Furthermore, 55% of deskless staff use WhatsApp as their primary workplace communication channel to receive messages from bosses, making the ability to switch off when not at work more difficult. In the hospitality sector, WhatsApp usage between management and employees rises to 75%.

“There are already data protection implications to consider when using social media, rather than dedicated apps, for work-related messaging. The latter is usually a much safer option for both sides.”

More clarity needed

Toma says businesses will need clearer guidance to put ‘flexible working from day one’ into practice.

“Our data consistently shows that frontline staff often value flexibility in a role as much as other factors like career progression and salary. However, the bill states the intention to provide flexibility ‘except where it is not reasonably feasible’ – which is ambiguous and open to interpretation. Obviously there are greater logistical considerations for flexibility in industries such as retail and hospitality, but it would help If the government could provide clear examples of where requests may be accepted or denied.

“It will also be interesting to see if – and how – ‘one-sided flexibility’ will be eradicated.  While zero hours contracts have been rightly criticised for a lack of worker protection, the so-called gig economy suited some employees. I hope the bill will lead to fairer agreements that give everyone – including parents, carers and others with additional responsibilities – true flexibility that works for them.”

*Report from Quinyx