Empowering the Freelance Economy

UK Recruitment Leaders Urge Government to Protect Temps and Contractors Amid Regulatory Concerns

Business Secretary Jonathan Reynolds hosted a Small Business Breakfast in Downing Street to discuss the upcoming legislation.
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Several UK recruitment bodies, including the Association of Labour Providers (ALP), Association of Professional Staffing Companies (APSCo), Recruitment & Employment Confederation (REC), and The Employment Agents Movement (TEAM), have come together to urge the government to safeguard the temporary agency work sector by not scaring off hiring companies.

In a joint letter to the Secretary of State for Business and Trade, the organisations highlighted the critical role temporary work plays in the economy, supporting around one million workers daily, as reported by Staffing Industry Analysts.

Is Labour’s Make Work Pay Plan Excessive?

The recruitment bodies warned that excessive regulation could harm the sector, reducing flexibility, causing employer hesitancy to commit to new hires and increasing unemployment. They called for the new Labour government to protect the sector by recognising its importance in future legislation, engaging with industry experts, and enforcing existing regulations to protect vulnerable workers while supporting business growth.

The letter highlighted that temporary work is often a pathway to employment, especially for young people, career changers, and those re-entering the workforce. It also supports economic resilience, as seen during the COVID-19 pandemic, where temporary workers played a vital role in sustaining essential services.

Furthermore, the flexibility offered by temporary roles benefits both workers, by allowing them to balance personal commitments, and businesses, which can adapt to fluctuating demands in sectors like IT, healthcare, agriculture, and hospitality.

Business Secretary facing pressure from business community

Angela Rayner, according to a Telegraph report, is encountering resistance from the Business Secretary regarding her proposal to grant workers full employment rights from their first day on the job, as business leaders voice growing concerns.

According to Whitehall sources, Deputy Prime Minister Rayner and Business Secretary Jonathan Reynolds are divided on the extent of the proposed reforms. There are fears that such sweeping changes could deter companies from hiring and potentially hinder economic growth.

Small business owners could be among the most impacted by the Labour’s Make Work Pay Plan. Business Secretary Jonathan Reynolds said small businesses across the UK make a huge contribution the economy and our communities – and is keen to get small business owners’ perspectives on Labour’s Plan.

“Small business owners don’t always face the same challenges as big business, so it is vital we talk to them directly on policies that will impact them to ensure their feedback helps shape our plan, so we can boost productivity and create the right conditions for their businesses to grow,” said Reynolds.

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