Hiring the right people has never been simple, especially for growing small businesses.
We all want to build a reliable, flexible team that fits around our business needs. But with Labour’s proposed Employment Rights Bill on the horizon, many employers are now facing a big question:
Are the ways we hire still going to work in the future?
The Bill promises the biggest shake-up of UK employment law in years. And while the goal is to protect workers, small businesses will need to adapt quickly and carefully.
Here’s a breakdown of the key changes and how you can stay ahead:
1. Say goodbye to zero-hours contracts?
Zero-hours contracts have long been a lifeline for businesses needing flexibility, but under the new proposals, they may be scrapped altogether in favour of predictable contracts with minimum guaranteed hours.
What you can do now:
Start exploring part-time or flexible fixed-term contracts. These still give you room to adapt to demand, while keeping you compliant and showing your team the stability they deserve.
2. Stronger protections for casual and agency staff
Casual workers and agency staff could soon have the right to request guaranteed hours after a qualifying period. This is a big shift for employers who rely on a flexible pool of workers.
What you can do now:
Audit your temporary workforce. If you’re using the same people regularly, think about whether offering a part-time or permanent role might be more cost-effective and less risky long-term.
3. Limits on fixed-term contracts
Fixed-term contracts are often used for seasonal peaks or one-off projects. But new rules may limit how many times you can renew these without offering full employee rights.
What you can do now:
If you use fixed-term contracts often, it’s time to reassess. Could some roles be made permanent? Or would a clearer plan for contract review dates give you (and your team) more confidence?
4. Freelancers or employees? IR35 is back in focus
Freelancers and consultants can add huge value, but the line between contractor and employee is being closely scrutinised under tougher IR35 enforcement.
What you can do now:
Check your freelancer agreements. Are they genuinely independent? Or are they working under your direction like an employee? Misclassification could lead to penalties you weren’t expecting.
What this means for you
These changes are all about shifting to fairer, more predictable work—but that doesn’t mean your business has to lose its flexibility. It just means reviewing your processes, refreshing your contracts, and taking a proactive approach.
At Starfish People HR, we work closely with small businesses to find people-first, legally-sound ways of working. Whether you need help navigating contracts, reviewing your hiring strategy, or just want to feel confident you’re doing the right thing we’re here.
You can call me directly on 01243 – 967961 or email [email protected]
Please stay connected with us email [email protected] our website www.starfishpeople.com for more updates, insights, and exciting developments in the world of HR!
You can also book a FREE 30-minute consultation with Helen our HR Guru in the Starfish People Virtual Meeting Room by using the link or scanning the QR code below.
