Fair Pay Agreement &
Employment Rights Bill
A strategic analysis for Isle of Wight Care Providers on the incoming "Make Work Pay" legislation and the new Adult Social Care Negotiating Body.
The Fair Pay Agreement
Establishment of the Adult Social Care Negotiating Body to set binding standards on pay and conditions, moving beyond the National Living Wage.
Make Work Pay
Implementation of "Day One" rights for unfair dismissal, a ban on exploitative zero-hours contracts, and immediate Statutory Sick Pay.
Enforcement
Creation of the Fair Work Agency with powers to inspect and enforce new statutory rights across the care sector.
The Sector Context
Understanding the national drivers for reform: High vacancies and turnover rates are the primary catalyst for government intervention.
Vacancy Rates Comparison
Source: Skills for Care / ONS Data
Workforce Turnover Analysis
Highlighting the retention challenge facing providers.
Make Work Pay: Core Proposals
The Employment Rights Bill introduces 28 individual reforms. These four areas represent the most significant operational shifts for Isle of Wight care providers.
Zero Hours Contracts
⏱️Workers with regular hours over a reference period will have a right to a guaranteed hours contract. "Exploitative" zero-hours contracts will be banned.
Day One Rights
🛡️Removal of the two-year qualifying period for unfair dismissal. Protection starts from the first day of employment (subject to probation periods).
Statutory Sick Pay
🤒Removal of the Lower Earnings Limit and the three-day waiting period. SSP will be payable from day one of illness.
Fire & Rehire
⚖️New strict restrictions on the practice of dismissing employees to re-engage them on inferior terms.
The Adult Social Care Negotiating Body
The Bill empowers the Secretary of State to establish this body via regulations. It fundamentally changes wage setting from a market-driven model to a sector-negotiated model.
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1
Composition
Will consist of trade union representatives (workers) and employer representatives.
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2
Remit
To negotiate remuneration, terms, and conditions. Initial focus is expected to be a sectoral minimum wage above the NLW.
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3
Ratification
Agreements are submitted to the Secretary of State and, if ratified, become law via statutory instrument.
Strategic Impact Analysis
Cost Projections
Estimated relative impact on provider budgets. Non-wage labor costs (SSP, Admin) will rise alongside the core wage bill.
Risk & Opportunity Matrix
Operational Risk
Reduced rostering flexibility due to guaranteed hours. Increased HR burden for compliance monitoring.
Financial Risk
Direct wage bill increase (SSP day 1 + FPA rates). Uncertainty if Local Authority funding will match mandates.
Strategic Opportunity
Level playing field prevents undercutting. Standardized terms may reduce churn and agency spend.
Legislative Timeline
Oct 2024: Bill Introduced
Employment Rights Bill enters Parliament. 28 consultations launched.
2025: Consultations & Setup
Detailed rules on Zero Hours. Selection of Negotiating Body members.
Mid-Late 2025: Royal Assent
The Bill becomes an Act. Secondary legislation drafting begins.
2026+: Implementation
New rights take legal effect. First Fair Pay Agreement potentially enforced.
Isle of Wight Partnership: Action Plan
Financial Planning
- ✓ Model "Day One" SSP budget impact (assume 2-3% cost rise).
- ✓ Review agency spend vs. permanent staff cost with guaranteed hours.
- ✓ Engage proactively with IOW Council on fee uplifts.
HR & Operations
- ✓ Audit workforce: Identify "Zero Hours" staff with regular patterns.
- ✓ Strengthen probation policies ahead of Day One rights changes.
- ✓ Monitor Negotiating Body appointments for sector representation.