Zero-hours contracts are agreements where employers are not obligated to provide a set number of working hours, and workers are not required to accept any work offered. This arrangement offers flexibility but can lead to income instability and unpredictability for workers.
Agency workers, who are employed by agencies but work under the direction of end hirers, often find themselves on such contracts, making them particularly vulnerable to these uncertainties.
This legislative change seeks to close potential loopholes where employers might have previously circumvented zero-hours contract restrictions by hiring through agencies. By mandating guaranteed hours for agency workers, the government aims to prevent such exploitative practices and promote fairer working conditions.
In October 2024, the government launched a consultation titled "Making Work Pay: the application of zero hours contracts measures to agency workers," seeking input on how to effectively implement these measures for agency workers. The consultation addressed two primary measures:
- Guaranteed Hours: Ensuring that contracts reflect the number of hours regularly worked by the agency worker.
- Reasonable Notice of Shifts: Providing agency workers with adequate notice of shifts and compensating them for shifts cancelled or altered at short notice.
Stakeholders were invited to share their views on these measures to inform the government's legislative approach.
The government proposes that both the hirer and the agency should be responsible for providing reasonable notice. In cases where shifts are cancelled or curtailed at short notice, the agency would be responsible for compensating the worker, with the possibility of recouping these costs from the hirer if they were responsible for the cancellation.
On 4th March 2025, the UK government has introduced significant amendments to the Employment Rights Bill, aiming to enhance workers' rights and address exploitative employment practices. A key provision of this bill is the ban on zero-hours contracts, which now explicitly includes agency workers. This means that employers are required to offer agency workers contracts that guarantee a minimum number of working hours each week, ensuring greater job security and predictability for approximately one million agency workers across the country.
In summary, the application of zero-hours contract measures to agency workers in the UK represents a pivotal move towards ensuring fairer working conditions and safeguarding the rights of a substantial segment of the workforce.
