The UK government will extend the ban on zero-hour contracts to include agency workers. This change is part of the new Employment Rights Bill. The goal is to give agency workers more job security. The bill includes 250 new rules to improve workers’ rights.
Agency Workers to Receive Compensation
Agency workers on zero-hour contracts will now get compensation if their shifts are canceled without notice. Many of these workers are in industries like warehouses, hospitality, and healthcare. The UK government has not defined what counts as “short notice,” but the new law aims to protect workers from sudden schedule changes.
The bill will also require companies to offer agency workers contracts with a set number of hours per week. This ensures they have more stable income. Trade unions have praised the change, but some business groups worry it could reduce job flexibility.
Labour’s Promise to End Unfair Contracts
The Labour government promised last year to end “exploitative zero-hours contracts.” The new law aims to stop companies from bypassing rules by hiring agency workers under different terms.
The minimum number of guaranteed hours for agency workers will depend on their past working hours. The government is still deciding whether to base this on a 12-week or longer period.
Trade unions have pushed for equal rights for agency workers. Paul Novak, head of the Trades Union Congress (TUC), said these workers need the same protections as permanent staff. He believes this change is a big step forward.
Concerns Over Job Flexibility
While many support the bill, some groups worry about losing job flexibility. The Recruitment and Employment Confederation (REC) says some workers prefer flexible schedules. Kate Shoesmith, REC’s Deputy Chief Executive, said the government must make sure these changes do not harm workers who need flexible jobs. She also said REC will work with the government to find the best way to apply these new rules.
Stricter Rules for Employers
The bill will also punish companies that use “fire and rehire” tactics. This happens when employers fire workers and rehire them with worse conditions. Companies that do this will now face tougher penalties. The fine will double from 90 days’ pay to 180 days’ pay.
The bill will also expand sick pay. Workers earning under £123 per week will now get sick pay from their first day off. They will receive 80% of their average weekly earnings or £116.75 per week, whichever is lower. Before, workers had to be sick for three days before getting paid.
Changes to Trade Union Rules
The law will also change rules for trade unions. Workers who plan to strike will now need to give their employers 10 days’ notice instead of 14 days. The government is also looking at changes to union recognition rules. Before, it considered lowering the minimum membership requirement from 10% to 2%. However, the new amendment does not set a specific number. Instead, it gives the Secretary of State the power to decide the threshold.
Paul Novak believes these changes will help build “a fair economy that benefits workers and businesses.” He said improving labor laws will stop unfair employers from undercutting good ones. He also said giving workers a stronger voice will lead to better working conditions.
Business Groups Express Concerns
Not everyone is happy with the new bill. Business groups say there are still too many unanswered questions. They worry about how these changes will affect companies, especially small businesses.
Martin McTague, leader of the Federation of Small Businesses, said small business owners are uneasy about the new rules. He said two-thirds of small businesses have decided not to hire new workers because of these changes. One-third of them are even thinking about reducing staff.
McTague also criticized the government for not helping small businesses handle these new costs. He pointed out that the bill forces businesses to pay more sick pay and limits their ability to let go of employees.
“These changes will hurt small businesses,” he warned. “If the government wants the economy to grow, they must listen to small business owners.”
The UK government is making big changes to protect agency workers. The ban on zero-hour contracts is expanding, and companies will face stricter rules. Workers will get more security, but businesses worry about the impact on flexibility and costs. As the government moves forward, balancing worker rights and business needs will be key.
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