The Employment Rights Bill: Answering FAQs from the recruitment sector

This is a guest blog by Business partner JMW

In this blog, we will answer the three most popular questions asked by businesses in the recruitment sector following the publication of the Employment Rights Bill.

Q: Are the rule changes for zero hour contracts going to impact contracts for services too?

The Bill does not directly address whether these changes will affect contracts for services. However, the obligation to offer ‘guaranteed hours’ to zero-hours workers could indirectly affect agency practices when deploying workers on contracts for services.

The measures listed are intended to reduce the reliance on insecure, flexible contracts where employers have unilateral control over hours. This could set a precedent for other forms of flexible work agreements, such as contracts for services, therefore agencies should be alive to these measures.

That said, neither the Bill nor the ‘Consultation on the application of zero-hours contracts measures to agency workers’ say the proposed changes will encompass contracts for service. Clarity from the Government is currently required on this.  

Q: If a temporary worker only just starts with you then goes on sick leave will there be a minimum number of weeks they have to work for the purposes of SSP?

There is no minimum length of service requirement for entitlement to SSP under the current legislation (Social Security Contributions and Benefits Act 1992). Employees, agency, temporary and zero-hours workers can qualify for SSP from the start of their contract. This is set to remain the position as there is no reference to a qualifying length of service in the Bill or the ‘Making Work Pay: Strengthening Statutory Sick Pay’ consultation document.

In this scenario, however, it is worth noting that the agency may act as the employer of the temporary worker in question. This would mean SSP would typically be administered through the agency rather than the end client. In these instances, agencies must ensure they keep accurate records of when workers are first reported as absent due to illness as this will be cemented as the first qualifying day for the purposes of SSP.

Q: Expand on the proposal regarding the duty on employers to protect staff from sexual harassment by third parties. Can you give an example?

The Bill proposes to insert a new s.40(1A)-(1C) into the Equality Act 2010 that places a duty on employers to take all reasonable steps to prevent sexual harassment of its staff by third parties. Like the penalty provided under The Worker Protection (Amendment of Equality Act 2010) Act 2023, if the Tribunal finds an employer has not fulfilled this duty, then they may be subject to a 25% uplift on a compensation award.

Recruitment agencies could implement the following measures to prepare in the event the Government proceed with this proposal:

• Establish a strict, well-communicated anti-harassment policy that covers third-party interactions
• Create a confidential and accessible reporting system for incidents of harassment
• Establish and enforce a zero tolerance harassment policy
•  Create a clear procedure to escalate complaints to senior management