In more detail

New protections

On 10 October 2024, the government published its Employment Rights Bill (ERB), which included extensive provisions relating to zero hours and similar contracts. The provisions stop short of banning zero hours contracts, as had previously been suggested, but do create a framework for the following:

• Right to a guaranteed hours offer (GHO): This is a right to be offered a contract that reflects the hours the worker regularly works, based on a specified reference period. 
• Right to reasonable notice of shifts and changes: A right to reasonable notice of shifts and to reasonable notice of cancellations/changes.
• Compensation for shift cancellations/changes: If shifts are cancelled, moved or curtailed on short notice, employers will have to compensate workers.
• Tribunal complaints: Workers will be able to file complaints if the employer fails to: (1) make a GHO when it ought to, or if the GHO is non-compliant with governing rules; (2) provide the requisite notice of a shift/change; (3) compensate if it gives insufficient notice of a shift/change/cancellation.

Many details of the new rights are subject to consultation and further regulations. This includes:

• Conditions on the number or regularity of hours required for the GHO right to be triggered.
• Confirmation of the reference period (12 weeks has been widely trailed).
• Timeline for offer period and response period.
• What is ‘reasonable’ notice and ‘short’ notice for shifts, changes and cancellations.

The new rights are not due to come into force before 2026.

Application to agency workers

As it stands, the ERB does not extend these rights to agency workers. However, in its Next Steps to Make Work Pay policy paper, the government stated that it would consult on how to achieve this. 

The government published this consultation on 21 October 2024, and it will close on 2 December 2024. It is clear that the government does intend for agency workers to be in scope, but seeks views on how to do this. Questions include:

• Do you think the guaranteed hours should be offered by the employment agency or the end hirer?
• Should end hirers be required to pay a transfer fee or use an extended hire period if they are required to offer guaranteed hours to an agency worker?
• Do you agree that the responsibility for providing an agency worker with reasonable notice of shifts should rest with both the employment agency and the hirer (with an employment tribunal power to apportion liability)?
• Do you think that legislation should prescribe how the end hirer should notify the agency that they have a shift available and of changes to these and when notification should be deemed to be received?
• Do you agree that the agency should be responsible for paying any short notice cancellation or curtailment payments to an agency worker?
• Do you think that the agency should be able to recoup this cost from the end hirer if/to the extent that the end hirer was responsible for the short notice cancellation or curtailment?
• If you think that the agency should be able to recoup this cost from the end hirer, do you think this needs to be ensured in legislation, or can it be left to the contractual arrangements between the agency and the end hirer?
• Should there be opt-outs in relation to recouping cancellation or curtailment costs?

The consultation also has broader questions about whether there are other factors that the government should consider in relation to the proposed measures.