Employment Rights Bill: Government outlines how zero hours and low hours measures will apply to agency workers

The Government has responded to its consultation on how its measures in the Employment Rights Bill relating to zero hours and low hours workers should apply to agency workers.

What rights are we talking about?

The Employment Rights Bill gives zero hours and low hours workers the right to a guaranteed hours contract reflecting the number of hours regularly worked during a reference period (expected to be 12 weeks). It also gives these workers the right to receive reasonable notice of shifts and compensation if shifts are cancelled, curtailed or moved at short notice. Much of the detail will be set out in secondary legislation which the Government intends to consult upon.

What is proposed?

In October last year, the Government consulted about how these measures should apply to agency workers. In particular, it asked whether responsibility for offering a guaranteed hours contract should rest with the agency or the end hirer, who should be responsible for giving reasonable notice of shifts and who should pay compensation where shifts are cancelled, curtailed or moved at short notice. It also considered options for recoupment from the other party.

What has the Government decided?

The Government has responded to its consultation and set out its approach.

Guaranteed hours

The Government has confirmed that agency workers will have the right to an offer of guaranteed hours and it will make the end hirer responsible for offering guaranteed hours as it considers that the end hirer is best placed to forecast and manage the flow of future work. However, the Bill will also include a power so that the agency or other entities can be made responsible in certain circumstances.

The Government does not propose to make any changes to current rules around transfer fees and extended hire periods. Agencies will therefore be able to include transfer fees or extended hire periods in their contracts with end hirers, as is currently the case.

In response to concerns about seasonal or temporary work, the Government says that businesses will be able to offer a temporary contract where there is a genuine temporary work need. It will consult before setting out the detail of what constitutes a temporary need in secondary legislation. It says it is also keen to discuss other ways in which it believes the legislation can cater for temporary work.

Reasonable notice of shifts

The Government has decided that responsibility for giving reasonable notice of shifts to agency workers should lie with both the hirer and the agency. It will not legislate on how hirers should notify agencies of available shifts and changes but it does propose to legislate on the manner in which agency workers should receive such notice. This detail will be dealt with in secondary legislation, not the Employment Rights Bill itself.

Compensation for shifts cancelled, curtailed or moved at short notice

The Government has decided that employment agencies should be responsible for paying agency workers compensation if shifts are cancelled, curtailed or moved at short notice, as the workers will already be on the agency’s payroll. However, agencies and hirers will be free to negotiate terms which allow these costs to be recouped from the hirer where the hirer was responsible for the change.

When will these changes take effect?

As a lot of the detail remains to be dealt with in secondary legislation and will be subject to further consultation, these changes are not imminent and are not expected to be in force before 2026.

The Government has also confirmed that it will develop guidance on the new measures to help agency workers, agencies and hirers to understand the new rights before they come into force.