The new Employment Rights Bill is expected to significantly reshape the social care workforce landscape over the next two years, with providers warning of rising costs and reduced flexibility.
This year’s HealthInvestor Summit brought together an expert panel to examine the implications of the Employment Rights Bill, and since then the Chancellor’s Budget announcement has added a further layer of impact for social care businesses, prompting renewed scrutiny of workforce costs, regulatory pressures and the overall financial sustainability of the sector. Connell Consulting take a look at the immediate changes and their impact.
Among the most immediate changes is a requirement for employers to track the average hours worked by bank and zero-hours staff over a 12-week period and offer contracts guaranteeing those hours. Sector leaders say this could diminish the agility many services rely on to manage fluctuating demand.
The Bills also introduce statutory sick pay from day one, a shift projected to add around £15 per employee. However experts describe this figure as “conservative.” In addition, employees will now gain the right to claim unfair dismissal from their first day, increasing potential legal exposure for care providers.
Looking ahead, we anticipate tightened scrutiny of agency staff, both in terms of quality and regulatory compliance, including VAT requirements. However, there is concern that Local Authority and Integrated Care Board uplifts may not cover the resulting rise in costs.
In brief:
The Employment Rights Bill represents a significant shift in employer obligations, yet many boards have not fully engaged with its implications. This gives HR leaders a key opportunity to steer not just policy changes but wider strategic and cultural responses. The reforms also prompt bigger questions about HR’s evolving role in shaping leadership, organisational culture, and risk management.