The UK government has announced plans to ban zero-hour contracts for agency workers as part of the Employment Rights Bill. The bill aims to protect workers from unfair practices in the workplace. It also introduces compensation for agency workers when their shifts are canceled at short notice. However, some details, like the definition of “short notice,” remain unclear.
Protecting Agency Workers
In the UK, there are around one million agency workers. They work in industries like hospitality, warehousing, and the NHS. Many of these workers are on zero-hour contracts, which provide no guarantee of work. This can lead to insecurity. The new bill requires employers to offer compensation when they cancel shifts at short notice. This rule aims to protect workers from the uncertainty that comes with zero-hour contracts.
Another key change is that employers will have to offer agency workers contracts with guaranteed minimum weekly hours. This is a significant shift. However, unions and the Recruitment and Employment Confederation (REC) have expressed concerns. They worry that these changes might reduce job flexibility, which many agency workers prefer.
Unions Welcome the Changes
Trade unions have praised the government’s efforts to change the law. Paul Novak, the general secretary of the Trades Union Congress (TUC), said that the bill would close a “loophole.” He stressed that agency workers make up a large portion of the zero-hours workforce. They need better protection from exploitative practices.
The bill states that the minimum guaranteed hours will be based on an agency worker’s average weekly workload. The government has not decided whether this will be calculated over a 12-week period or longer. This is a point that still needs to be worked out.
While unions are happy with these changes, the REC is cautious. Kate Shoesmith, the deputy chief executive of the REC, said that many agency workers value the flexibility of their jobs. Many choose agency work because it allows them to control their hours. Shoesmith urged lawmakers to avoid making changes that could harm workers’ flexibility. The REC has said it will continue to work with the government to make sure the new laws strike a balance between flexibility and security.
Tougher Penalties for Unfair Dismissals
The bill also increases penalties for companies that use “fire and rehire” tactics. This is when companies dismiss workers and rehire them under worse terms without consultation. The new rules will double the penalties for such practices. Workers who are affected will receive more compensation. It will increase from 90 days’ pay to 180 days’ pay.
This change has been welcomed by unions. They see it as a way to stop companies from using unfair practices to save money. The increase in penalties is meant to discourage businesses from using fire-and-rehire tactics.
Expanding Sick Pay for Low-Income Workers
The bill also makes changes to sick pay. Right now, statutory sick pay (SSP) is only available to workers who earn more than £123 per week. They must also be ill for three consecutive days. Under the new bill, low-income workers will be eligible for SSP. This change will help workers who need support when they are sick.
Low-income workers will receive either 80% of their weekly earnings or the statutory sick pay, whichever is lower. This is expected to provide better protection for workers who fall ill but are not earning a high wage.
Changes to Trade Union Laws
The bill also includes changes to trade union laws. The government plans to reduce the strike notice period from 14 days to 10 days. It will also make it easier for unions to be recognized. However, the government has not yet specified the exact percentage needed for union recognition.
These changes are seen as a way to give unions more power. They will help unions organize workers and fight for their rights. However, some business groups are concerned about these changes. They fear that these reforms will make it harder for businesses to operate.
Business Concerns
Business groups have expressed concerns about the new rules. Martin McTague, chair of the Federation of Small Businesses (FSB), warned that these changes could discourage small businesses from hiring. He said that two-thirds of small businesses do not plan to expand their workforce because of the reforms. One-third of small businesses might even reduce their staff.
McTague also criticized the government for not providing enough support to small businesses. He pointed out that small businesses will face higher costs for sick pay and the new rules on dismissals. He argued that these changes could hurt business growth.
Despite the concerns from business groups, unions remain optimistic. They believe that the changes will improve conditions for workers. The bill is seen as a step toward fairer treatment and stronger protections for workers in the UK. The government has pledged to continue working with both employers and unions to strike a balance between protecting workers and ensuring business flexibility.
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