Imminent changes to statutory sick pay could cause chaos - REC

Commenting on upcoming changes in April, Neil Carberry, Recruitment and Employment Confederation (REC) Chief Executive, said:

“From today, businesses are faced with huge changes as a result of the Employment Rights Act, as well as increases to the National Minimum Wage. This comes after a huge rise in payroll taxes last year, low growth and the impact of the Gulf conflict on energy prices, as firms do not benefit from the price cap and a third are on annual deals that expire this month.

“Business success is at the heart of addressing the cost-of-living crisis, but the pressure on firms right now is to reduce employment and raise prices to make ends meet. We are at a tipping point. Government needs to back firms to create prosperity, as sustainable growth comes from successful businesses. That should start with more sensible, staged and practical approaches to the new rules the Act introduces, such as the right to guaranteed hours, which is totally unworkable as currently conceived.

“The changes to statutory sick pay introduced this week will also cause chaos if not coupled swiftly with better guidance for firms, as a small minority of workers will try to defraud firms. We are also losing some of the caution that made the minimum wage a success, with its footprint reaching well beyond the sectors traditionally most associated with it.

“All of this jeopardises employment creation and could supercharge youth unemployment in particular. A clear signal of flexibility from government could especially give hospitality, retail and food manufacturing the lift they urgently need. This is the moment for government to act and restore confidence.”