In your corner - REC Campaigns and Policy news - 8 September

A Liz Truss era has begun. This week, we saw history made (twice) with the appointment of the new Prime Minister and it being in Balmoral rather than Windsor or London. For only the third time, the UK has a female Prime Minister. Needless to say, the new government has its work cut out, coming to power at a critical time for the UK economy. Inflation is at a 40-year high. Small businesses especially are under financial pressure due to energy costs. There is a war in Europe and NHS backlog and ambulance wait-time are at an alarming level. That said the PM has already got plans to “deliver”.

Just a few hours ago, the PM announced much anticipated measures to support households and businesses with energy bills, called Energy Price Guarantee. At the time of writing, we await more details on what the support for business will entail but it looks likely to include a cap on energy price per unit that aligns with the household cap. However, this will be for six months and not two years as is the intervention for households.  Although this relief will be welcomed by business, it is not enough and the REC will be advocating for the six month support to be extended to a year followed by a review.  Six months will not provide the stability businesses need to plan into the new year. We need to see a long- term view of support.

And this is just the start. In the upcoming emergency budget, people and businesses will be looking to see what further financial support packages are revealed. The REC is also writing to the new Chancellor Kwasi Kwarteng imminently with our budget submission. If you’d like to share your view on the support measures, our door is open via policy@rec.uk.com

The REC campaigns team has also already sent letters to the new government, sharing the findings from our recent Overcoming Shortages report and the policy recommendations from our ‘Manifesto for Growth.’ If there was ever a more appropriate time for governments and businesses to work together, it is now. The REC has signalled its willingness to help.

Holiday Pay hub launched following the Harpur Trust v Brazel ruling

The Supreme Court ruling in July on annual leave and holiday pay for permanent employees with irregular working patterns has created confusion and concern across the recruitment industry. To answer members’ questions and provide all the latest information and supporting materials around the new calculation of holiday pay and annual leave, the REC has launched a new hub: Holiday pay: Harpur Trust v Brazel. Earlier this month, the REC also wrote to the Department of Business, Energy and Industrial Strategy, setting out the industry’s concerns as well as requesting clarity on calculating this type of holiday pay.

Education sector meeting on 15 September

Our next Education sector meeting is taking place on Thursday 15 September from 1pm to 2.30pm. Join us for the latest legal and campaigns updates, including news on Harpur Trust v Brazel, the new ‘Keeping Children Safe in Education’ guidance and our Overcoming Shortages campaign. We will also be joined by representatives from the Crown Commercial Service to discuss the new education framework, and Amiqus, an REC business partner and IDVT supplier, to talk about their new digital right to work check platform. You can register to attend here.

Discussion on skills and labour market of the transport sector

The REC team recently met with officials from the Department for Transport who are leading on the work of the Transport Employment and Skills Taskforce – which is chaired by an REC member, WSP. We discussed the work of the Taskforce and challenges of raising awareness of the wide-ranging jobs pool in the industry. The REC looks forward to connecting with the team in the near future to discuss the direction of the department under new leadership and its role in facilitating people to be able to get to work.

Future of Work Review

In May, Matt Warman MP was asked by the former Prime Minister to conduct a high-level review of strategic issues related to work in the UK. Warman was subsequently made DCMS minister so the review was passed to officials. However, Warman published a letter this week summarising his recommendations. We are pleased to see much of the discussion with REC CEO, Neil Carberry reflected in the letter, particularly around skills, place, and employment rights. Rightly, Warman says the “juggle” between where people’s jobs are, how often they work from home, and the location of those they care for “will define the future of work”. He also recognises the value of flexible working saying, “if we get it right, more people will be able to stay in work for longer, benefitting the entire economy and their own health and wellbeing.” We’re pleased that REC calls for cross-departmental thinking in this area have been heard, with officials in Cabinet Office, HMT, DWP, BEIS and DfE, working in collaboration to take the programme of work forward.

Acas’s updated guidance on suspension

The Advisory, Conciliation and Arbitration Service (Acas) has updated their guidance on suspension to help employers properly support staff when they are suspended at work. The guidance provides clear advice for firms on how to decide whether to suspend a worker, how to provide mental health support for suspended workers and how to calculate pay and holiday for them. You can find the guidance here and we encourage our members to take a look to follow all legal requirements regarding workplace suspension.

Research Corner

The KMPG and REC’s latest Report on Jobs  highlighted a further increase in recruitment activity during August. However, the expansion in permanent placements was little-changed from July's 17-month low, while temp billings growth was the weakest seen for a year-and-a-half. The recent slowdown in hiring reflected greater economic uncertainty, rising costs and candidate shortages, according to recruiters.

Last week, the REC also published the latest Labour Market Tracker, revealing that the number of active job adverts across the UK has remained between 1,600,000 and just under 2,08,000,000 since early-June.