Temporary and contingent talent has been playing an increasingly pivotal role in the rapidly evolving world of work.
However, a recent survey of 300 UK hiring managers, conducted by Cpl’s Talent Evolution Group, indicates that many hiring managers feel unprepared to navigate the legal complexities of employment law relevant to these workers.
While there are significant differences around the legislation concerning permanent and contingent workers, the constantly evolving nature of employment laws makes it challenging to ensure that contingent workers receive equal consideration.
Of the hiring managers surveyed, a significant 94% advocate for clearer legal distinctions between permanent and contingent roles
Let’s be clear about the need for clarity
Of the hiring managers surveyed, a significant 94% advocate for clearer legal distinctions between permanent and contingent roles. This highlights the urgent need for enhanced understanding and management capabilities in navigating the UK’s employment laws for temporary and contingent work arrangements.
This necessity is further underscored by the finding that nearly one-third (31%) of these managers feel ill-equipped to manage legal situations that require a deep understanding of the UK’s employment laws concerning contingent working arrangements.
Non-compliance has consequences
This knowledge gap is not without consequences. In June 2023, the UK Government sanctioned 202 employers for failing to meet the National Minimum Wage requirements. This oversight impacted nearly 63,000 workers. These violations garnered substantial penalties totalling almost £7 million, including compensation owed to the employees.
And the situation appears to be getting worse. In February 2024, 524 companies were named by the government for failing to pay the minimum wage. This impacted more than 172,000 employees, amounting to a deficit of nearly £16 million.
Ensuring legal compliance for contingent workers is an intricate process, requiring regular oversight and quick adaptation to legislative changes
Equipping hiring managers with the right tools
Despite an overwhelming majority (98%) of hiring managers acknowledging the importance of employment law expertise in the recruitment process, only 56% reported receiving regular legal training at work.
Training frequency varied, with over one-third (36%) only receiving training when deemed necessary by their employers.
About one-third (31%) cited the lack of employer-provided training as a barrier to their engagement with employment law content and only 20% of managers actively sought out information on this topic on a regular basis.
This discrepancy points to a significant gap in providing hiring managers with the necessary tools and knowledge to navigate employment law effectively.
Overcoming obstacles
Even among hiring managers who do receive training on employment law for contingent workers, there are numerous obstacles to staying on top of frequent legal changes.
Nearly half (49%) cited workload as a barrier to keeping up to date with employment laws and 48% found the subject overwhelming or were unclear on where to find relevant information.
Embracing … technologies not only helps in managing the volume and complexity of legal information, but also in identifying trends and potential legal issues before they escalate
The need for accessible resources
Ensuring legal compliance for contingent workers is an intricate process, requiring regular oversight and quick adaptation to legislative changes.
While 69% of respondents believe they have a solid understanding of UK employment law, 30% feel inadequately informed and rely heavily on their support teams for guidance.
When seeking advice on managing temporary and contingent workers, most managers turn to their in-house HR (56%) or legal departments (46%), highlighting the need for accessible internal resources and expertise.
Bridging the gap
Here are five strategies for bridging the employment law knowledge gap.
- Understand the changes
The first step in navigating the changing legal landscape is to understand the nature and implications of these changes.
This involves keeping an eye on legislative developments, court decisions and regulatory updates that could impact your industry or profession.
Recognising the drivers behind these changes, such as technological innovation, environmental concerns or shifts in public opinion can also provide valuable context and insights.
- Leverage technology
Technology plays a significant role in adapting to changing legislation and ensuring compliance.
Legal tech tools, from document automation to artificial intelligence-driven legal research platforms, can ensure hiring managers are able to assess the accuracy of information and keep up to date on compliance in a simple and efficient manner.
Embracing these technologies not only helps in managing the volume and complexity of legal information, but also in identifying trends and potential legal issues before they escalate.
Fostering a culture of openness and understanding around compliance within your organisation is crucial to bridging the knowledge gap
- Continuous learning
In a rapidly evolving environment, continuous learning is essential. Formal learning, such as law courses or certifications can ensure hiring managers have a baseline understanding of employment law.
Informal learning avenues, such as webinars, podcasts and industry publications are also useful to keep hiring managers up to date with new developments and are a great addition to courses and certifications.
Knowledge sharing and collaboration through peer networks and professional associations can also provide valuable opportunities to stay ahead of the curve.
- Seek expert advice
While education is important, there are instances of complex legal challenges where the expertise of legal professionals is indispensable.
Building relationships with legal advisors who are well-versed in specific areas of employment law, relevant to your industry and needs, can provide tailored guidance to help hiring managers understand specific regulations and to navigate intricate legal obstacles.
- Foster a culture of compliance
Fostering a culture of openness and understanding around compliance within your organisation is crucial to bridging the knowledge gap.
Developing clear policies and encouraging open communication about legal issues, ethical considerations and best practices can reinforce this culture and mitigate risks.
Giving hiring managers an array of opportunities and avenues to expand their knowledge and seek expert advice on legal issues is key to developing an open culture around compliance.
