Employment Rights Bill: What it Means for Public Practice

On October 10th, the UK government released the new Employment Rights Bill, promising to reshape the landscape for workers and businesses alike.

For accountancy firms and professionals working in public practice, the legislation introduces both opportunities and challenges.

Several changes have been announced, aimed at improving worker protections and creating a more flexible labour market, but there is a notable absence of some important policies- like the highly anticipated Right To Switch Off legislation.

The announcement has left many sectors wondering what lies ahead, and public practice is no different.

So, here at Public Practice Recruitment Ltd, we're delving into the key provisions of the Bill, exploring the implications for both accountancy firms and accountants working in public practice.

Key Provisions of the Employment Rights Bill

The Employment Rights Bill introduces several important changes that businesses and workers need to know about. Here are the key provisions and how they could be relevant to public practice:

1. Flexible Working from Day One: Employees now have the right to request flexible working arrangements immediately upon starting a new job, which includes the possibility of adjusting working hours, locations, or patterns. This will likely impact firms needing to accommodate accountants’ preferences for hybrid or remote work models.
2. Zero-Hour Contract Regulations: The Bill offers better protections for workers on zero-hour contracts, mandating more predictable working hours. While this might not directly impact full-time accountants, it may affect firms relying on temporary or freelance staff during busy periods like tax season.
3. Enhanced Protections for Pregnant Employees and New Parents: Stricter regulations ensure that these groups are safeguarded during redundancy processes, obliging accountancy firms to review their policies for handling employee transitions during maternity or paternity leave.

The Elephant in the Room: Where is the Right to Switch Off?

One of the most anticipated elements of the Employment Rights Bill was the introduction of the "Right to Switch Off" - a measure that would allow employees to disengage from work-related communications outside of their contracted working hours.

For accountancy professionals, many of whom struggle with long hours and high levels of stress, this would have represented a significant shift in work-life balance norms.

However, despite speculation and widespread support from unions and worker advocates, the Right to Switch Off did not make it into this version of the Bill.

So why was it omitted, and is there hope that it will be introduced in a future update?

Industry Pressure and Unresolved Concerns

The omission could be seen as a result of pressure from industries that rely on continuous availability, including the financial and legal sectors.

Many firms have resisted such regulations, arguing that the nature of their work demands flexibility and availability beyond the standard 9-to-5. Accountancy firms, especially those handling client accounts or time-sensitive financial audits, may have shared similar concerns.

Introducing a Right to Switch Off would necessitate significant changes in client relationship management and service delivery, especially during periods like the end of the financial year or tax filing season.

There may also be concerns over the practical implementation of such a policy. The boundaries between work and personal time have blurred during the pandemic, especially with the rise of remote work.

While the idea of the Right to Switch Off has widespread appeal, enforcing such a regulation could be complex and fraught with grey areas. Many employers worry about how to manage expectations, especially with global clients in different time zones.

Will It Be Introduced Later?

Though the Right to Switch Off was excluded from this Bill, the conversation is far from over.

France and Ireland have already adopted similar policies, and there's growing pressure for the UK to follow suit.

The government may be waiting for more concrete evidence of how such a right could be successfully implemented without disrupting critical business operations.

It's possible that future legislation or updates to the Bill may introduce a watered-down or phased version of the Right to Switch Off, particularly as worker well-being becomes an increasingly prominent topic.

Single Status of Worker?

Another anticipated policy missing from the Bill is the proposal to merge the current employment statuses of employee and worker into a single category of "worker".

Whilst it remains part of the Government’s long-term plan, the absence of this proposal demonstrates the government's understanding of the complexity of implementing this.

What Does This Mean for Public Practice?

The Employment Rights Bill brings several potential shifts for firms and accountants working in public practice, impacting daily operations, recruitment, and overall firm culture.

1. Adapting to Flexible Working: Flexible working rights will require firms to rethink how they manage their teams. For firms that traditionally rely on in-person collaboration, especially during peak periods, adjusting to more flexible arrangements could pose logistical challenges. However, firms that adapt quickly will be more attractive to top talent seeking a better work-life balance, which is a growing demand in the sector. Embracing remote work models and digital collaboration tools is also proven to increase efficiency and reduce overhead costs, but these changes will need to be balanced carefully to ensure that service delivery remains consistent, particularly for client-facing accountants.
2. Recruitment and Retention: The expansion of flexible working rights and enhanced protections for vulnerable workers may help firms improve staff retention. Offering the option to work remotely or adjust hours will be a key selling point for accountancy firms aiming to recruit in a competitive market. Firms that promote a modern, flexible work environment may have an edge over those clinging to traditional structures. However, it also introduces challenges, as firms will need to assess how flexible arrangements impact performance, especially during high-pressure periods like audit season or tax filing deadlines. Firms that invest in project management tools and streamline workflows are more likely to maintain productivity while offering these new work options.
3. Compliance and Operational Adjustments: Firms, especially smaller ones, will need to ensure they are compliant with the Bill’s enhanced protections and flexible working regulations. This may involve updating employment contracts, internal policies, and restructuring HR processes to manage flexible work requests efficiently. For firms that rely on temporary staff during peak periods, the new zero-hour contract regulations could limit flexibility, potentially driving up the costs of securing temporary or freelance workers. These changes may require firms to rethink their workforce planning strategies, particularly around tax season and other busy times of the year.
4. Cultural Impact: The Bill could also drive a broader cultural shift within public practice. Historically, accountancy firms have been known for their long hours and high-pressure environments. The expansion of flexible working and the growing focus on worker well-being may require a re-evaluation of these expectations, creating a more supportive environment that fosters balance and prevents burnout. This shift may take time, but it aligns with larger trends in employee satisfaction and retention.

Looking Ahead

While the Employment Rights Bill marks a significant step in modernising the UK’s labour market, it’s clear that more reforms could be on the horizon.

The exclusion of the Right to Switch Off and the government’s commitment to ongoing reviews suggest that further updates may be inevitable.

Sector leaders are expecting more back and forth before we see the tangible impact of the Bill, with Neil Carberry, Chief Executive of the Recruitment and Employment Confederation , saying:

"The Employment Rights Bill is perhaps the biggest non-Covid intervention in our labour market by a government in 20 or 30 years. Clearly it's a big intervention but actually the announcement is really only a mile post. Nothing in this Bill is changing business in 2025. This is all stuff that will happen in 2026 and later. That means there is time to get things right. And whilst the Bill is quite big, it's actually quite light on the detail. It's difficult to be thumbs up or thumbs down about the announcement and that's because the real battles, the real arguments are still to come about the regulations."

The Employment Rights Bill presents both opportunities and challenges, and firms should be prepared to adapt to future changes, particularly as the debate around worker well-being and the changing nature of work continues to evolve.

From flexible working rights to enhanced protections for vulnerable workers, the legislation will require firms to adapt their policies, potentially reshape their work cultures, and consider new recruitment strategies.

At the same time, the absence of the Right to Switch Off serves as a reminder that not all changes come at once - firms must remain at the forefront of future developments.

Are you struggling to keep up with the ever-evolving market? Whether you're a firm looking to hire a talented accountant, or you're an accountant keen to work with a forward-thinking firm, the team here at Public Practice Recruitment Ltd is here help.

Contact us today at [email protected]

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