FCSA, the UK’s leading membership body for the temporary labour market, has submitted its official response to the government’s consultation on proposed changes to collective redundancy and fire-and-rehire practices. This consultation forms part of the “Making Work Pay” package, designed to enhance worker protections while balancing the needs of businesses.
FCSA’s Key Recommendations
FCSA has outlined critical recommendations to ensure the new measures do not inadvertently disrupt the temporary labour market:
- Exclude agency and temporary workers: The nature of their employment structures differs significantly from permanent staff, making these measures unsuitable for application.
- Clarify responsibilities: Clear guidance on obligations within the employment chain is essential to ensure fair outcomes for workers, end clients, agencies, and umbrella companies.
- Review impact on tribunals: Policymakers must carefully assess how these changes could increase employment tribunal cases, placing unnecessary strain on businesses and delaying justice for workers.
FCSA emphasises the importance of recognising the diverse nature of the temporary labour sector. Misaligned policies risk driving up costs, reducing flexibility for businesses, and inadvertently harming workers by pushing them into precarious arrangements.
Concerns About Interim Relief Awards
FCSA has expressed particular concerns about extending interim relief awards to fire-and-rehire cases, especially in the context of umbrella companies.
- This change could disproportionately burden compliant umbrella companies while creating opportunities for non-compliant firms to exploit loopholes.
- Smaller businesses within the sector may struggle to absorb the added costs, threatening the stability of the temporary workforce.
Advocating for Balanced Solutions
FCSA believes existing dismissal laws already offer robust protections for workers and calls for a measured, evidence-based approach to any new policies. Policymakers must avoid unintended consequences that could undermine the very protections they aim to strengthen.
Supporting a Thriving Temporary Labour Market
As a trusted voice in the sector, FCSA is committed to working closely with the government to ensure compliance, protect workers, and promote a thriving temporary labour market. Through continued collaboration, FCSA seeks to ensure balanced policies that align with the unique challenges of the industry.
