Zero Hour Contract Workers

All Jobs Will Provide A Minimum Level Of Job Security and Predictable Hours

New legislation will be introduced to limit the use of Zero Hour Contract Workers. Labour intends to ensure that all jobs provide a minimum level of job security with predictable hours and pay. Contracts should represent the hours Zero Hour Contract Workers usually work and receive reasonable notice of any change in shifts or working time, with compensation proportionate to the notice given for any cancelled shift.

Proposed Changes

The Labour government are planning new rules designed to prevent “exploitative” zero-hour contracts. It is currently unclear how the legislation will differentiate between “exploitative” and permissible zero-hours contracts. The King’s Speech also did not give any further detail on what would be considered ‘exploitative’.

Right To A Contract The Reflects The Hours Regularly Worked

A new right for workers to request a contract that reflects the hours regularly worked (by reference to a 12-week period) will be introduced. We currently have no details on whether there will be any guaranteed minimum hour requirements, or if there are grounds for employers to resist an average-hours contract.

Right To Reasonable Notice Of Work Schedules

Labour is also proposing to introduce a requirement for employers to provide reasonable notice of the times employees are required to work and any changes in shifts with compensation for any cancelled or curtailed shifts (proportionate to the amount of notice given). We have no details on what exceptions will be introduced to address unexpected work shortages or increases.

Timescales

The planned right to request a predictable working pattern due to come into force in September 2024 could be dropped to allow for Labour’s more radical plans in this area. But that legislation has already passed through both houses and received Royal Assent, so it seems more likely, to me, that this will go ahead and the secondary legislation will be implemented to extend the right to request a predictable working pattern to cover labour’s plans.

Top Tips

In the short-term audit your workforce to identify the proportion of those on zero-hour contracts and review how the 12-week average calculation would impact them. You may also need to review the processes you have in place for issuing work schedules and cancelling shifts, in light of the proposed compensation scheme.

Moving forward, if your business has seasonal surges a shift in practice from using zero hours contract workers to using fixed term contract workers may provide the same flexibility with less administrative burden.

Employee Handbook Compliance Package

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