The UK’s hospitality sector, a vital part of the economy, has faced relentless hurdles in recent years. Starting with Brexit and the pandemic, which forced widespread closures and a mass exodus of workers from the industry, hospitality businesses found themselves grappling with severe staffing shortages. Further innovations will arrive this autumn with the new Employment Rights Bill 2024. Labour’s New Deal for Workers, which will be introduced by October, will bring significant changes to hospitality businesses, particularly in the use of flexible working.

Challenges in the hospitality sector

As the industry slowly began to rebuild, fresh challenges were introduced. Inflation soared, driving up the costs of food, energy, and wages. At the same time, consumers tightened their belts due to the cost-of-living crisis, leading to a decrease in discretionary spending. Many businesses have had to make difficult decisions, such as reducing the number of hours they operate and laying off staff, in an effort to stay afloat in a tough economic climate. Let’s see how to optimise costs and use a new flexible working model that goes beyond the Zero-Hours Contracts (ZHCs). First, let us look at the key aspects of the Employment Rights Bill 2024.

Key components of the Employment Rights Bill 2024

The new Bill includes major provisions that could have a significant impact on hospitality businesses:

Regulations on Zero-Hours Contracts (ZHCs)

The Bill aims to reform the use of zero-hours contracts. In 2024, there will be around 1.03 million people on zero-hours contracts in the UK. Since 2000, there has been a net increase of 805,000 people on this type of contract, which is widely used in the hospitality industry due to the unpredictable and seasonal nature of the sector.

The expected change would require businesses to offer a permanent contract to any worker who has been on a ZHC for 12 weeks, with the contract hours based on their previous 12 weeks of work. This change could increase costs and reduce the flexibility that many businesses rely on to manage fluctuating demand. Alternatively, companies might try to avoid this by rotating staff more frequently, which could lead to higher turnover and lower service quality.

Unfair dismissal

There are also changes in the Bill regarding unfair dismissal. Currently, it is only possible to request unfair dismissal after two years of service. Under the proposal, this right would be recognised from the first day of work. This could lead to an increase in the number of claims and create difficulties for all employers, especially in the hospitality sector.

new challenges for the hospitality sector

Freelance workers as a solution for UK hospitality

In this challenging landscape due to the Employment Rights Bill 2024, finding a flexible and cost-effective staffing solution is more important than ever. Jobby offers a digital platform that connects hospitality, retail, and logistics businesses in London with freelance workers for short-term roles. Hiring freelancers on a self-employed basis provides several advantages.

More flexibility

As self-employed workers, you don’t have to worry about offering permanent contracts after a certain period, whereas zero-hours contracts require formal agreements after 12 weeks. This allows businesses to maintain the flexibility they need without being locked into long-term commitments.

Permanent staff satisfaction

Freelancers hired through Jobby can help the team during busy times. This flexibility helps keep the morale of permanent staff high. And you can manage a flexible workforce easily.

Optimise costs

There are additional costs associated with hiring on zero-hours contracts or through agencies. Similarly, there may be more instances of unfair dismissal, which can increase costs. By hiring freelancers directly through our platform, you can keep costs under control. plus, the right to claim unfair dismissal does not apply to the self-employed.

How Jobby supports hospitality businesses

Jobby is a digital platform that connects businesses with freelance professionals for short-term work across various sectors, including hospitality, retail, and logistics. Founded in Italy in 2016, Jobby has rapidly expanded, establishing a presence in the UK market since 2022. The platform is designed to make flexible work more accessible and manageable for both companies and freelancers.

A wide range of businesses trusts Jobby across London to meet their short-term staffing needs. Here’s why:

  • Reliable Freelancers: Jobby ensures quality by allowing businesses to rate freelancers after every shift. This feedback system helps maintain high standards, ensuring that you get the best possible workers for your needs.
  • Fair Pay Rates: Jobby sets a minimum pay rate of £12 per hour, ensuring that all freelancers are compensated fairly for their work.
  • Comprehensive Insurance & benefits: Jobby offers robust insurance coverage for all its freelancers, including protection against accidents, medical expenses, and loss of personal belongings during work shifts and exclusive deals on top. Our freelancers also have many benefits.
  • Costs under control: Jobby applies the market’s lowest fixed fee for every hour booked through the platform, with no hidden fees or additional costs. Check out prices to choose your plan.
  • Wide range of candidates: when agencies have a limited number of candidates to choose from, the Jobby platform allows you to choose from a wide range of freelancers. You will find experienced professionals as well as young talent from Generation Z.

In these uncertain times, Jobby offers a practical solution to the staffing challenges faced by the hospitality sector, helping businesses maintain operational efficiency and service quality without the constraints of traditional employment contracts. Activate your 7 days free trial to find vetted and qualified freelancers.