• 2 min read

Ending ‘Exploitative’ Zero Hours Contracts

woman’s hands signing an employment contract, close-up

What’s happening?

Guaranteed Hours Contract

The Employment Rights Bill will introduce a duty on employers to offer workers, who are on either a zero hours or low hours contract, guaranteed hours. The hours to be offered will need to reflect the number of hours the worker regularly works within a particular reference period (anticipated to be 12 weeks). This duty will continue to apply at the end of each reference period until they no long meet the ‘’qualifying worker’’ criteria which will apply if:

  • During the reference period, the worker worked under; a zero hours contract, a contract entered into in accordance with a zero hours arrangement or a low hours contract.
  • During the reference period, the worker worked for a number of hours which meets certain conditions set out in the Employment Rights Bill such as, the number and regularity of the hours worked.
  • The worker worked under a low hours contract and the hours worked within the reference period exceed the minimum number of hours provided for under the contract.
  • When the hours were worked, the worker was not an excluded worker or an agency worker (defined in regulation 3 of the Agency Workers Regulations 2010).

There will be no obligation on a qualifying worker to accept the employer’s offer of guaranteed hours so they will be able to choose to remain on their existing contract if they so wish.

Right to reasonable notice of shifts

The Employment Rights Bill will require employers to give workers reasonable notice of a shift (specifying the date, start time and the number of hours to be worked). If an employer changes or cancels a workers shift at short notice (the details of what constitutes unreasonable notice has yet to be determined) they will need to pay their worker compensation. If the employer fails to make this payment, the worker will be entitled to bring a tribunal claim.

Right to compensation for shifts cancelled, curtailed or moved at short notice

Employers will be required to compensate their workers if they cancel, move or curtail a shift at short notice. The amount to be paid will be set out in the Regulations in due course.

Why is this important?

This reform is designed to  provide  workers with a greater level of security, clarity and predictability so workers can better plan their lives and finances.

Please note, a full consultation has yet to be conducted so some of the details have yet to be disclosed.

What should you do?

Stay Tuned: Keep an eye out for more of our Legal Updates that will be published over the coming weeks with more details on each of the reforms.

Advice: If you require advice relating to the new bill, please contact [email protected]  who will put you in touch with someone from our Trethowans Employment Team.

Disclaimer

This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.

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