The government has confirmed that agency workers will receive similar safeguards to zero-hour contract workers under the Employment Rights Bill (the Bill).
Strengthening agency workers’ rights
The government’s response to its consultation on the application of zero-hours contracts measures to agency workers underscores its commitment to ending “one-sided flexibility” in the labour market, which disproportionately affects agency and zero-hour contract workers. Under the planned amendments, agency workers will gain the right to:
- a guaranteed hours contract;
- reasonable notice of shifts; and
- compensation if shifts are cancelled, changed or curtailed at short notice.
The government has highlighted the need to apply the measures slightly differently to agency workers compared to zero-hours contract workers based on the (usually) temporary nature of agency work, as well as the three-party relationship between the agency worker, the temporary work agency and the end hirer.
Who is responsible for offering guaranteed hours?
A key area of consultation was determining whether the responsibility to offer guaranteed hours should fall on the employment agency or the end hirer. Responses to the consultation were divided, with equal numbers supporting agency responsibility, hirer responsibility or having no preference. Notably, however, trade unions and staff associations advocated for shared responsibility.
The government decided that end hirers will bear the primary responsibility for offering guaranteed hours to eligible agency workers. This is based on the rationale that hirers are best positioned to predict future work requirements, as well as to avoid complications of joint liability. However, further amendments to the Bill will allow the introduction of regulations that could impose obligations on agencies or other parties in certain cases.
The government’s consultation response recognised the particular issues that arise for seasonal and genuinely temporary work and it plans to consult on how to define what constitutes a temporary need and other ways the legislation can cater for seasonal work.
Joint responsibility for notice of shifts
Ensuring agency workers receive adequate notice of shifts is another key proposed reform. The Bill will place the responsibility for providing reasonable notice of shifts jointly on the employment agency and the end hirer. The government has opted to maintain this approach from the Agency Workers Regulations 2010, allowing tribunals to determine appropriate allocation of liability based on the facts of the case.
The government has confirmed that it will not impose strict requirements on hirers for how they notify agencies of available shifts or subsequent changes to these shifts, but it will ensure clear standards are in place for how agency workers receive such notifications.
Compensation for short-notice shift changes
The responsibility for compensating workers for shifts cancelled, curtailed or moved at short notice will rest with employment agencies. As agency workers are already on their agency’s payroll, this approach is expected to streamline payments and reduce administrative burden on end hirers. However, agencies will have a right to seek reimbursement for compensatory payments from hirers under existing agreements.
What will this mean for employers?
Employers who rely on agency workers should begin reviewing their current workforce management practices to ensure compliance with the forthcoming changes. Key steps include:
- reviewing existing contracts;
- revising policies on shift scheduling and cancellations;
- formalising agreements with employment agencies regarding guaranteed hours and compensation; and
- improving record-keeping to track qualifying periods and ensure compliance.
These changes may require operational adjustments, particularly for sectors with fluctuating demand, but will also promote fairer working conditions and help mitigate legal risks associated with non-compliance.
The government will provide much of the detail needed for these reforms through secondary regulations. It will also develop guidance materials to help agency workers, agencies and hirers understand their new rights and responsibilities before the measures come into effect.
We are running a series of 30-minute webinars on the key measures in the Bill to highlight the key points employers should be aware of and thinking about. You can sign up for these here.
