Agency workers will be included in the ban on ‘exploitative’ zero-hours contracts, as the government tables around 250 amendments to its landmark Employment Rights Bill today.

Like people employed directly on zero-hours contracts, agency workers will also have to be guaranteed a minimum number of hours each week and given sufficient notice about changes to their shifts.

Other government amendments to the Employment Rights Bill include an increase in the maximum period of the protective award in collective redundancy from 90 to 180 days and the modernisation of the industrial relations framework.

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Better rights and protections will also be provided for workers operating under umbrella companies and, as Personnel Today reported yesterday, statutory sick pay eligibility will be changed to benefit low-paid workers.

Government responses to five consultations on aspects of the bill are being published later today.

Deputy prime minister Angela Rayner said: “For too long, millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.

“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.”

She added that the government has been working closely with businesses, unions and workers to progress the bill.

Business secretary Jonathan Reynolds said: “Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction. We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow.”

Employment Rights Bill amendments

The government said that all workers, including around 900,000 agency workers, should be able to access a contract which reflects the hours they regularly work. Today’s amendments will ensure that agency work does not become a loophole in its plans to end exploitative zero-hours contracts.

They will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice, while retaining the “necessary flexibility” for employers to manage their workforce.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said: “Employers will be relieved to see some amendments, at what is clearly a milestone moment for government. It has consulted business, and this is reflected in some of the decisions on the future shape of the legislation.

“There is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual, including the nine-month statutory probation period and the promise of a light touch approach, as well as the return to the single establishment rule for collective redundancy.”

However, she added that businesses remain cautious and that the government must continue its “positive approach to engagement with firms and remain open to changes”.

‘Crunch time’

Ben Harrison, director of the Work Foundation at Lancaster University, said: “We are now approaching crunch time for the government’s Employment Rights Bill as it reaches report stage in Parliament.

“News this morning that the proposed ban of exploitative zero-hours contracts will include agency workers suggests government intends to resist pressure to dilute reforms. Currently, over a million workers face unpredictable hours due to these contracts, undermining their financial stability and health. This reform will help ensure workers – especially those aged 16-24 who are 5.9 times more likely to be on zero-hour contracts than older workers – enter a labour market where good jobs offer both security and flexibility.”

The government’s increase to 180 days for protective awards for collective redundancies means employment tribunals will be able to grant more compensation to employees when employers fail to consult properly, including in fire and rehire practices.

“We want to enhance the deterrent against employers deliberately ignoring their collective consultation obligations and ensure it is not financially beneficial to do so,” said the government.

The government is also updating the legislative framework in which trade unions operate to align it with modern work practices and will act to ensure that workers can access comparable rights and protections when working through an umbrella company as they would when taken on directly by a recruitment agency.

Neil Carberry, chief executive of the Recruitment and Employment Confederation, said: “Regulating the umbrella market closes a loophole in addressing non-compliance. Recruiters have long called for regulations that ensure a level playing field. Like all aspects of the government’s changes, proper enforcement will be key to protecting both businesses and workers.”

Personnel Today will provide more details when the consultation responses are published.

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