Employment Rights Bill proposals: a ban on Zero-Hours Contracts?

This is a guest blog REC business partner JMW

The Employment Rights Bill was introduced in the House of Commons on 10 October 2024 and received its second reading on 21 October 2024. The government has now published their response to the consultation on the application of zero hour contracts measures to agency workers. The main points are summarised below.

Right to a guaranteed hours contract

The government has stated their intention to ban zero-hours contracts, calling them “exploitative”. The method in which the government proposes to address these unfair practices is by giving workers the right to a guaranteed hours contract if they work regular hours over a defined period. 

The responsibility to offer guaranteed hours to qualifying agency workers will fall on the end hirer, as end hirers are stated to be best placed to forecast and manage the flow of future work. While the responsibility rests on the end hirer, any agency or end hirer will retain the ability to offer guaranteed hours to an agency worker if they wish to.

Any workers who are offered guaranteed hours will be able to turn the offer down and remain on their pre-existing working arrangement if they prefer.

There will be an exception to the requirement to offer guaranteed hours where there is a genuine temporary work need. Guidance on what this comprises will be contained in secondary legislation but is likely to include seasonal demand.

Right to be given reasonable notice of shifts and changes in shifts

Responsibility for providing the agency worker with reasonable notice of shifts will be on both the employment agency and the end hirer. Liability will be apportioned by the tribunal on a case by case basis, based on each party’s factual responsibility.

The government has recognised that in some scenarios, short notice can be reasonable. What constitutes reasonable short notice will be outlined in secondary legislation. 

The government intends to specify in regulations how an agency worker should receive notice of shifts, and any cancellations, curtailments or movements to these. This will only apply to notifications to the worker, not to notifications between the hirer and the agency.

Payment for cancelled, moved or curtailed shifts

Responsibility to pay any short notice, cancellation or curtailment payments will be on the employment agency. Any recoupment arrangements they have with the hirer will be permitted.

The Bill is listed for report stage in the House of Commons on 11 March 2025. Readers are encouraged look out for further updates as well as secondary legislation which will include more technical aspects of the measures. 
​​​

Learn more about JMW