[UK] Government consultation on zero hours protections for agency workers launched

The UK government has launched a consultation on how best to extend new zero hours contracts measures to agency workers, as promised in its Next Steps to Make Work Pay policy paper. The consultation will close on December 2, 2024, Baker McKenkie reports.

On October 10, 2024, the government published its Employment Rights Bill (ERB), which included extensive provisions relating to zero hours and similar contracts. 

The provisions didn’t ban zero hours contracts, as had previously been suggested, but they reportedly create a framework for the following:

• Right to a guaranteed hours offer (GHO)
• Right to reasonable notice of shifts and changes
• Compensation for shift cancellations/changes
• Tribunal complaints

According to Baker McKenzie, workers will be able to file complaints if the employer fails to: (1) make a GHO when it ought to, or if the GHO is non-compliant with governing rules; (2) provide the requisite notice of a shift/change; (3) compensate if it gives insufficient notice of a shift/change/cancellation.

Details of the new rights are subject to consultation and further regulations. These include:

• Conditions on the number or regularity of hours required for the GHO right to be triggered.
• Confirmation of the reference period (12 weeks has been widely trailed).
• Timeline for offer period and response period.
• What is ‘reasonable’ notice and ‘short’ notice for shifts, changes and cancellations.

The new rights will not come into force before 2026.

The ERB does not currently extend these rights to agency workers. However, in its Next Steps to Make Work Pay policy paper, the UK government stated that it would consult on how to achieve this. 

It published this consultation on October 21, 2024, and it is set to close on December 2, 2024. The government does reportedly intend agency workers to be in scope but is looking for views on how to do this. 

Consultation questions include:

• Do you think the guaranteed hours should be offered by the employment agency or the end hirer?
• Should end hirers be required to pay a transfer fee or use an extended hire period if they are required to offer guaranteed hours to an agency worker?
• Do you agree that the responsibility for providing an agency worker with reasonable notice of shifts should rest with both the employment agency and the hirer (with an employment tribunal power to apportion liability)?
• Do you think that legislation should prescribe how the end hirer should notify the agency that they have a shift available and of changes to these and when notification should be deemed to be received?
• Do you agree that the agency should be responsible for paying any short notice cancellation or curtailment payments to an agency worker?
• Do you think that the agency should be able to recoup this cost from the end hirer if/to the extent that the end hirer was responsible for the short notice cancellation or curtailment?
• If you think that the agency should be able to recoup this cost from the end hirer, do you think this needs to be ensured in legislation, or can it be left to the contractual arrangements between the agency and the end hirer?
• Should there be opt-outs in relation to recouping cancellation or curtailment costs?

In addition, the consultation reportedly includes broader questions about whether there are other factors that the government should consider in relation to the proposed measures.

Source: Baker McKenkie

(Link via original reporting)

The UK government has launched a consultation on how best to extend new zero hours contracts measures to agency workers, as promised in its Next Steps to Make Work Pay policy paper. The consultation will close on December 2, 2024, Baker McKenkie reports.

On October 10, 2024, the government published its Employment Rights Bill (ERB), which included extensive provisions relating to zero hours and similar contracts. 

The provisions didn’t ban zero hours contracts, as had previously been suggested, but they reportedly create a framework for the following:

• Right to a guaranteed hours offer (GHO)
• Right to reasonable notice of shifts and changes
• Compensation for shift cancellations/changes
• Tribunal complaints

According to Baker McKenzie, workers will be able to file complaints if the employer fails to: (1) make a GHO when it ought to, or if the GHO is non-compliant with governing rules; (2) provide the requisite notice of a shift/change; (3) compensate if it gives insufficient notice of a shift/change/cancellation.

Details of the new rights are subject to consultation and further regulations. These include:

• Conditions on the number or regularity of hours required for the GHO right to be triggered.
• Confirmation of the reference period (12 weeks has been widely trailed).
• Timeline for offer period and response period.
• What is ‘reasonable’ notice and ‘short’ notice for shifts, changes and cancellations.

The new rights will not come into force before 2026.

The ERB does not currently extend these rights to agency workers. However, in its Next Steps to Make Work Pay policy paper, the UK government stated that it would consult on how to achieve this. 

It published this consultation on October 21, 2024, and it is set to close on December 2, 2024. The government does reportedly intend agency workers to be in scope but is looking for views on how to do this. 

Consultation questions include:

• Do you think the guaranteed hours should be offered by the employment agency or the end hirer?
• Should end hirers be required to pay a transfer fee or use an extended hire period if they are required to offer guaranteed hours to an agency worker?
• Do you agree that the responsibility for providing an agency worker with reasonable notice of shifts should rest with both the employment agency and the hirer (with an employment tribunal power to apportion liability)?
• Do you think that legislation should prescribe how the end hirer should notify the agency that they have a shift available and of changes to these and when notification should be deemed to be received?
• Do you agree that the agency should be responsible for paying any short notice cancellation or curtailment payments to an agency worker?
• Do you think that the agency should be able to recoup this cost from the end hirer if/to the extent that the end hirer was responsible for the short notice cancellation or curtailment?
• If you think that the agency should be able to recoup this cost from the end hirer, do you think this needs to be ensured in legislation, or can it be left to the contractual arrangements between the agency and the end hirer?
• Should there be opt-outs in relation to recouping cancellation or curtailment costs?

In addition, the consultation reportedly includes broader questions about whether there are other factors that the government should consider in relation to the proposed measures.

Source: Baker McKenkie

(Link via original reporting)