Employment rights exemption for struggling arts organisations proposed in parliament

Struggling arts organisations could be given an exemption from proposed legislation to end zero-hours contracts and boost workers’ rights under an amendment to the Employment Rights Bill being debated in the House of Lords.

According to the government’s own analysis, plans to upgrade workers’ rights, which include challenging the use of zero-hours contracts and increasing sick pay, will cost businesses up to £5bn a year to implement

An amendment to the bill, currently going through the House of Lords, would see the changes “applied in stages” for arts and cultural organisations, with timelines for the gradual implementation of provisions based on their “size, turnover and reliance on public funding”.

Tabled by crossbench peers Earl of Clancarty Nicholas Trench and Lord Freyberg, the amendment would also provide an exemption from the application of a number of provisions in the bill “for arts and cultural organisations in financial distress” as well as a review mechanism to “assess compliance when their financial position stabilises”.

Transition support

There would also be a “transition support package” to provide advisory services to arts and cultural organisations on restructuring their employment practices.

A further amendment, also tabled by Trench and Freyberg, would establish an independent review board to monitor the impact of changes to employment rights made by the legislation on the arts and cultural sector.

The board would conduct annual impact assessments, including consideration of employment rates and sector growth. It would recommend policy adjustments if evidence showed that changes to employment rights made by the legislation were leading to unintended consequences, and hear representations from trade unions and the arts and cultural sector.

The government has previously said that it expects most reforms in the Bill to take effect no earlier than 2026 and that, where more time is needed for businesses to prepare for the change, this will be taken into consideration.

Casting directory fees

Meanwhile, casting directories for creatives could be prevented from charging upfront fees to work-seekers under another amendment.

Equity general secretary Paul W Fleming said that, if the amendment is agreed, it would be “an important step towards ending the tax on hope for performers and creatives who have for too long faced unfair financial barriers for seeking work”.

“If successful, this amendment would pave the way to end upfront fees for casting directories and creative recruitment platforms for good.

“We want to see a level playing field and ensure fair and open access for all performers and creatives seeking work in this highly competitive industry. We warmly welcome the parliamentary amendment to the Employment Rights Bill and hope it is passed by peers.”

The House of Lords began debating amendments to the Employment Rights Bill today (29 April), with the process expected to last several weeks.