The Department for Business Energy and Industrial Strategy (BEIS) launched a consultation on 19th July 2019, seeking views on earlier proposals put forward by the Low Pay Commission in December 2018, addressing the issue of ‘’one-sided flexibility in the workplace.
When Matthew Taylor was commissioned by the Prime Minister to conduct an independent review into Modern Working; assessing how employment practices might need to change in line with modern business models, the result of which was the production of the ‘Good Work Plan’.
Produced in July 2017, Matthew Taylor’s report included 53 recommendations, 51 of which were adopted by Government. Overall the report highlighted the need for all work to be provided by employers on a ‘’fair and decent basis creating realistic opportunities that give individuals realistic scope to develop and progress’’. The review considered a range of issues and the impact these would have on new forms of work in addition to new working methods that have developed over recent years and the how these interact with worker rights, responsibilities and obligations. At the heart of the review was the need to create greater flexibility in the workplace that reflects the change in market conditions.
Whilst a key part of this review was implemented in 2014 when the right to request flexible working was extended to all employees with 26 weeks continuous service, the report found that some employers were abusing flexibility rights to the detriment of some workers by transferring excessive amounts of risks without any corresponding benefit. Referred to as ‘one-sided flexibility’. Examples of which included employers in some industries, cancelling shifts at short notice or sending workers home when no work is available.
To get a greater perspective of the issues highlighted in the review, Government enlisted the services of the independent Low Pay Commission (LPC) to provide advice on the scope of ‘one-sided flexibility’ in the workplace. LPC’s review considered the impact of introducing a higher minimum wage for non-guaranteed hours, alongside suggestions on how policies could be shaped to address the issue.
On review, LPC concluded that providing an enhanced hourly rate for working non-guaranteed hours was not feasible given the financial impact of this but suggested other measures should be considered.
The Low Pay Commissions proposals were outlined in their report which was published on the 17 December 2018, alternative recommendations were:
- A right to switch to a contract which reflects the normal hours worked
• A right to reasonable notice of work schedule
• Compensation for shift cancellation or curtailment without reasonable notice
• Information for workers
Legislation will be brought forward to ensure workers have a right to more stable contract. Information for workers has already been implemented under changes to the Employment Rights Act 1996 with the changes to itemised payslips and further measures extending the right for all workers to receive a payslip.
This new consultation seeks views on:
- providing a right to reasonable notice of working hours
- providing workers with compensation for shifts cancelled without reasonable notice
It also seeks views on what guidance government can provide to support employers and encourage best practice to be shared across industries.
The closing date is October 11 October 2019, the full consultation can be found here.
