How will the new employee rights bill change the temporary, contract and permanent recruitment landscape?

The new Employee Rights Bill (ERB) is due to come into effect later this year and although some of the specific changes are currently expected to be out for consultation for a period of time the proposed changes are starting to impact employers plans on hiring. This combined with the recent budget has changed the hiring landscape significantly in the UK which has been reported on a lot over of the last few months.

The ERB is designed to protect worker rights and at this point has not included off payroll workers. It will have a direct impact on permanent employees and further strengthens the rights for fixed term contract hires unless there is objective justification to treat that worker differently. With many of the rights being from day one and increasing the costs for employers the UK labour market will be moving closer to many countries in Europe. It is therefore reasonable to look to them to see how the changes will affect employers attitude to hiring in the UK.

As employers look for ways to reduce the risks and costs associated with permanent hiring in Europe there has always been a higher volume of people being hired initially on a temporary basis before being converted to a permanent employee. Whilst this might be perceived to benefit only the employer my experience is it can be of equal value to an employee.

Even the most robust interview process can be limited in it’s ability to showcase the inside of a business – the people, culture and values that are so important for identifying fit on both sides. This has become even more heightened with so many interview processes happening either partially or sometimes entirely online. It might come as a surprise to hear that we sometimes see people joining a business where they have never been on site or met anyone face to face. In these instances how valuable would a period of temporary working be to all parties?

We have already started to see some increase in candidates being available immediately and therefore there is a greater opportunity for more people to take on a position on a temporary basis. Not all these positions will convert to a permanent role but once someone is working with a client they can often put themselves in a very strong position to apply for other roles internally and sometimes even create a role for themselves through the quality of their work.

With the current sluggish growth in the economy the flexibility that the temporary market offers to all parties will likely mean more clients and candidates choose this route. It will be interesting to see if longer term the ERB turns this into an ongoing shift from employers and candidates alike.