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Amid much advance publicity, Labour leader, Ed Miliband announced that a Labour Government would legislate to give people the right to a ‘regular’ contract after 12 weeks of working ‘regular’ hours.
The proposal strengthens Labour's previous policy, which sought to ensure legal entitlement to a regular employment contract after one year of service.
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He said: “It seems logical that, faced with these proposals being enacted, hirers would look to make greater use of third-party employment providers that free them from the risks and costs associated with taking on staff.
“Employers in many sectors have an inherent need for access to a flexible labour pool, in order to respond to fluctuations in workload and demand.
“By outsourcing employment of contingent workers to an ethical umbrella provider, organisations can minimise their exposure to risk whilst ensuring that workers are enjoying full employment rights and benefits – including guaranteed minimum hours of work.”
Demonisation
The irony won't be missed on the umbrella sector, which has been the target of criticism and condemnation by Labour and trade unions for some of their practices. And the Government is currently considering a clampdown on some of the travel and subsistence expenses after they believed it was open for misuse by some of the more unscrupulous companies.
Compliant umbrellas have been concerned they might be caught up in any crack-down. But, ironically, Labour's announcement might actually benefit them.
Rob said: “Given the recent demonisation of our sector by Labour and the trade unions, it’s ironic that we could actually end up benefiting from this policy.
“We have always maintained that professional umbrella employers have an important role to play in the UK labour market, and this policy announcement by Labour goes to prove our point.”
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Susie Hughes © Shout99 2015
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