Employment Rights Act could drive rise in insecure work, research suggests
The study from Employment Hero found that one in five (20%) small businesses plan to increase their use of contractors or temporary staff in response to the reforms.
Upcoming changes under the Employment Rights Act could lead to an increase in temporary and contract-based roles, potentially creating a more precarious labour market, according to research from Employment Hero.
The study found that one in five (20%) small businesses plan to increase their use of contractors or temporary staff in response to the reforms, which are set to come into effect in April.
The company said this could result in a two-tier workforce, with more individuals working outside the scope of employment protections such as sick pay, guaranteed hours and other benefits.
Employment Hero’s platform data, based on more than 120,000 employees across around 4,500 businesses, suggested shifts in hiring patterns may already be emerging.
Month-on-month employment growth in part-time roles fell by 0.3% in February, including a sharper decline of 3.6% among Gen Z workers.
In contrast, full-time roles saw growth of 0.9% over the same period.
The findings indicate a labour market becoming more polarised between secure full-time employment and more flexible, but less protected, forms of work.
The survey also found that businesses are considering a range of measures to manage rising costs.
Related
Banking and finance roles decline as labour market restructures – Employment Hero
More than a third of UK employees say AI managers could boost productivity, research finds
Permanent hiring stabilises after 45-month decline, report finds
Just 6% of employers see lasting improvement after tackling toxic workplace behaviour, research reveals
Six in 10 asset managers say AI will improve job security, research finds
Insecure workers face £3,000 annual hit from unpredictable hours, TUC finds
Nearly half of care workers unclear on career progression, NCFE finds
Nearly half of young workers do not expect a pay rise this year, Zest finds
Two-thirds of workers nostalgic for pre-AI workplace, research finds
Unemployment rate rises to 4.9% in June, as payroll numbers fall – ONS
CV deceit could cost employers thousands, HR expert warns
