Written submission from Domestic Angels (ERB0015)
Domestic Angels is a network of small businesses delivering cleaning, home help, holiday home and spring cleaning services within the domestic sector.
Founded in 2002 as a solution to generating an income whilst also being a parent, providing flexible, supported and protected employment to our Angels (the staff) has always been a top priority. We recognise that Mum’s, and in particular single Mum’s, struggle to find employment with the flexibility they need to confidently go out to work. Consequently, they often fall into the unprotected black market or, if they take a fixed contract, they fall out of employment quickly as it is unsustainable. This results in them finding themselves in a downward spiral of despair and deteriorating mental health.
The flexibility of zero hours contracts allows the Angels to avoid the traps described above and to help our applicants to get out to work in a safe employed environment.
We are proof that not all zero hours contracts are toxic and feel very strongly that we should not be tarred with the same brush as irresponsible companies.
It is also clear that the culmination of the proposed changes would result in employment becoming too expensive for the micro and SME sector. This will result in a reduction in employed staff in favour of contractors who are self-employed. In the domestic cleaning industry this is a very high risk decision putting people in very dangerous scenarios both financially and personally. Exactly what we have fought against since 2002.
Decision makers must be required to understand and accept that in the micro/SME sector, profit is often the same as the income for the business owner and that this is very likely modest at best. Any decision that increases the cost of employment will come straight out of the modest pocket of the business owner who is probably taking home far less than they would in employment in favour of the flexibility needed to be a parent or carer.
Introduction of such extensive interference as described in the proposed bill will reduce the number of employees within the micro/SME sector, close many businesses within the same sector, reduce wage rises and push the most vulnerable into the black market sector or unemployment.
We have referenced the following factsheet which gives an overview of everything contained in the bill and that can be found here - https://assets.publishing.service.gov.uk/media/67125a75386bf0964853d7ff/employment-rights-bill-overview.pdf
In reality all aspects will affect our businesses in some way; however the main ones identified are -
● Protection from 'unfair dismissal' from day one and a statutory probationary period. This mentions a 'lighter touch' dismissal process but we need to know what 'light touch' means and the reality of implementing it. Also whether extensions beyond the initial statutory probation period will be allowed before providing a reasonable impact comment https://assets.publishing.service.gov.uk/media/67125b939cd657734653d7e8/unfair-dismissal.pdf
● Protection from dismissal during pregnancy and six months afterwards. Some of this has already been introduced in respect to redundancy and is mostly fair and reasonable; as it clearly protects pregnant women and new mothers. However, we would like more detail in regards to underperformance and behavioural issues that are not related to pregnancy. Our research has found that a company would be able to still dismiss a pregnant woman for underperformance or misconduct, however again, there needs to be clear guidance and parameters, so that companies are acting fairly but also not falling into any traps.
● Sexual Harassment - the guidance is aimed at bigger companies; there is a need for clearer guidance, support and communication to small businesses. In our business we have taken this seriously and have found a way to cover this comprehensively; but more guidance and communication is essential as there is a lack of awareness of the Workers Protection Act within the SME sector. This is partly because its narrative is focussed on bigger businesses.
● Bereavement leave - The bill also introduces statutory bereavement leave.
Ban on Zero Hours contracts / Predictable hours
The factsheet on this is here - https://assets.publishing.service.gov.uk/media/67125b70e94bb9726918ee39/zero-hours-contracts.pdf
The bill covers three main areas, all of which will be problematic -
This bill is protecting workers from "bad" employers, however we are not in that category and actually provide flexible employment for people who might not be able to find employment within the more structured and stricter parameters of other roles. This is a good thing and our setup should not be treated in the same way as other companies; this needs to be acknowledged and addressed, one size does not fit all.
Examples in relation to the 12 week reference period and the 'guaranteed hours'-
● Where a client requests an Angel to be swapped and so Angel A moves from a three hour job to a two hour one and Angel B goes from two to three hours. Angel A then goes below the 'guaranteed' hours identified in the 12 week reference period, as we are fully led by client numbers and demand.
● Where a client ends their contract and so the work is no longer there and it is a while before a new client to fill that time/Angel availability is found.
● Where a client cancels ad-hoc cleans and is not required to pay a cancellation fee (we have an issue of fairness in balancing the contract cancellation charges with the fact that Angels also cancel at the last minute).
● Hours change from week to week depending on the work available and the Angel availability
● Where clients have fortnightly cleans rather than weekly or Angel has fortnightly availability not weekly. The hours would go up and down alternately each week. In this case monthly guaranteed hours would be better, notwithstanding all the objections/questions above. So this is not solely the solution.
● The costs involved in changing the contracts when hours flex/vary is an unnecessary burden on business and emotional burden to the Angel, this will have a negative impact on retention
Insights from our Angels:
● We choose a Domestic Angels contract because it provides the security of employment with the flexibility we need as parents and carers.
● The contract enables us to respond to parental demands without guilt and still complete assigned work.
● The contract allows for our changes in availability throughout the school year and life. Increasing and reducing hours easily is key.
● If guaranteed hours are introduced, our employer would need to set aside finances to cover this rather than pay us better wages.
● Guaranteed hours will cause us guilt if a customer has a change of circumstance and can no longer have our services.
● The current contract is the balance between the jeopardy of self-employment and the restrictions of fixed hours i.e. in a supermarket, this suits us and don’t see a need for change. We don’t need the government to interfere with our arrangements.
● The proposed change feels like the government trying to control us and gives little consideration for the reality of life.
Human Rights
With around 5.5 million small businesses in the UK currently, any detrimental impact from these changes could have a significant knock-on effect on employment/unemployment. This will affect wages, employee treatment, and their right to work in favourable conditions, potentially diminishing their rights. This will affect wages, employee treatment, and their right to work in favourable conditions.