Government amends Employment Rights Bill to include framework for application of zero hours contracts measures to agency workers

Adrian Fryer

The Government has published its response to its consultation on the application of zero hours contracts measures to agency workers. The Employment Rights Bill already includes complex proposals for low and zero-hours workers covering three key areas:

1. A right for low and zero hours workers who satisfy certain conditions to be offered guaranteed hours at the end of a relevant reference period that reflects the hours worked during that reference period.
2. A right for zero hours and other specified workers to be given reasonable notice of shifts and changes in shifts.
3. A right for zero hours and other specified workers to payment each time a work shift is cancelled, moved or curtailed at short notice.

The Government has confirmed that it will table amendments to the Employment Rights Bill to include a framework for the extension of the application of each of these measures to agency workers. How the measures will work in practice must await secondary legislation. However, the consultation response provides some information:

• Responsibility for providing the agency worker with reasonable notice of shifts will be on both the employment agency and the end hirer – with the tribunal able to apportion liability based on the responsibility of each party in a given case.
• Responsibility to pay any short notice cancellation or curtailment payments will be on the employment agency but they will be allowed to re-coup this from the hirer where they have arrangements with the hirer covering this.
• The Secretary of State will have the right to publish regulations stipulating the form and manner in which an agency worker should receive notifications of shifts, cancellations or curtailments.
• Responsibility to offer guaranteed hours to qualifying agency workers will fall on the end hirer.
• There will be an exception to the requirement to offer guaranteed hours where there is a genuine temporary work need (such as seasonal demand).
• The current system of extended hire periods and transfer fees under The Conduct of Employment Agencies and Employment Businesses Regulations 2003 will continue to apply.

Contact our Employment Team.