Zero hour contract ban to include agency workers

According to the BBC, as part of amendments to the government's Employment Rights Bill, the ban on "exploitative" zero-hour contracts will apply to agency workers. This means that agency workers will be entitled to a contract guaranteeing a minimum number of working hours per week. This measure aims to provide more security and stability for agency workers.

The provision is one of the new clauses in the Employment Rights Bill to be published on Tuesday. While unions have welcomed the inclusion of agency workers in the ban, the Recruitment and Employment Confederation (REC), which represents the industry, said the change should not "undermine" the "flexibility" that zero-hour contracts offer to some workers. The REC emphasizes the importance of balancing worker protection with the needs of businesses and employees.

It is reported that agency workers who opt for zero-hour contracts will also be eligible for compensation if their work shifts are changed at short notice. However, the amendment does not specify the exact meaning of "short notice." Currently, there are approximately 1 million agency workers in the UK, working in sectors such as warehousing, hospitality, and the National Health Service (NHS). Clearer definitions of "short notice" will be crucial for effective implementation.

Unions have been calling for agency workers to be included in legislative reforms to prevent employers from circumventing the proposed zero-hour contract rules by hiring agency staff. TUC General Secretary Paul Nowak said the government's move aims to close this "loophole" because agency workers "make up a large proportion of the zero-hours workforce and need to be protected from bad working practices." This measure seeks to ensure fair treatment and decent working conditions for all workers, regardless of their employment status.

The Recruitment and Employment Confederation (REC) has expressed concerns about the change. Kate Shoesmith, Deputy Chief Executive Officer, said that people choose agency work "to get flexibility at particular stages of their lives" and that the new rules should not undermine this. She added that time should be given "to ensure any legislative changes do not conflict with existing and hard-won protections for agency workers." The REC will "continue to work with the government to ensure this." Finding the right balance between flexibility and protection is essential for the agency work sector.

According to the BBC, the government will table 250 amendments on Tuesday. These include doubling the penalties for companies involved in so-called "fire and rehire" practices. This means that if companies fail to adequately consult with employees before dismissing them and rehiring them on worse terms, they could be forced to pay workers 180 days' wages in compensation, up from the current 90-day penalty payment. This aims to deter unfair labor practices and protect workers from exploitation.

The amendments also include a commitment to extend sick pay to workers earning less than £123 a week, from their first day of illness. They will be entitled to 80% of their average weekly earnings or statutory sick pay (currently £116.75 a week) – whichever is lower. Currently, workers must be sick for three consecutive days to qualify for statutory sick pay. This change will provide much-needed financial support to low-income workers during periods of illness.

In addition, the rules on union recognition and the ability of unions to take industrial action will be amended. The government is proposing that workers must give employers 10 days' notice before any strike action, instead of the current 14 days' notice. Currently, a union recognition ballot can be held if 10% of employees are union members. The government has been consulting on reducing this to 2%, but the proposed amendments do not specify a specific number, only granting the Secretary of State the power to lower the 10% threshold. These changes could have significant implications for labor relations and collective bargaining.

Nowak said that these changes are designed to "create a modern economy that works for workers and businesses," and that raising standards "will stop good employers being undercut by bad ones, and means more workers will benefit from having a union voice." The government aims to create a fairer and more productive labor market through these reforms.

Some business groups have criticized the government for failing to provide more details on how the legislation will work in practice, and they are unlikely to be satisfied with what is in the amendments. Federation of Small Businesses (FSB) Executive Director Craig Beaumont said that "anyone hoping to see the government seriously consider the concerns of small employers looks likely to be disappointed for now." He stated: "There is a yawning gap between the stated aims of this Bill and the likely negative impact on jobs and growth." The FSB emphasizes the need for policies that support small businesses and promote economic growth.