UKHospitality said the cost of changes to employer National Insurance Contributions will have a far more immediate impact on employment than changes to employment rights.

In evidence to the Employment Rights Bill Committee, Allen Simpson, Deputy Chief Executive of UKHospitality, reiterated the need to get the legislation right for hospitality businesses, reflecting its unique circumstances compared to office jobs.

Giving evidence on behalf of the sector, Allen raised:

• The need for longer reference periods to determine the hours offered in a contract offer to someone working on a zero hours contract. The current proposal of 12 weeks is too short to accurately reflect typical hours, if, for example, those 12 weeks have been worked through a peak season, like the summer or Christmas.
• Providing clarity for businesses around notice or cancellation of shifts to reflect the practicalities of hospitality. For example, team members agreeing to swap shifts at late notice, or a venue trying to stand up a team at late notice to cater for a large booking.

Commenting after the evidence session, Allen said: “I was pleased to give evidence to the committee today and share the extensive feedback we’ve had from members about these changes to employment rights.

“Importantly, the Government has listened to UKHospitality and ensured the legislation does enable employees to continue to have the right to flexible working. That is critical for both our team members and businesses.

“However, there are very practical issues that it needs to get right for it to work for hospitality. Issues like the reference periods used for contracts and how exactly we provide notice for shifts may seem technical, but they’re integral to how hospitality runs on a day-to-day basis.

“The larger issue though is that by the time these changes come into effect, the sector’s ability to support employment is likely to have been significantly eroded by £3.4 billion in costs the Budget inflicted on hospitality. Immediately, these costs will have a much larger impact on employment than these changes.

“Not only does the Government need to get this Bill right, but it needs to do right by the hospitality businesses that employ 3.5 million people and urgently address the upcoming changes to employer NICs.”