The government has today tabled around 250 amendments in its landmark Employment Rights Bill. These include the inclusion of agency workers as part of the ban on exploitation zero-hours contracts.
As with people who are employed directly under zero-hour contracts, agency workers must also be guaranteed a certain number of hours per week and receive sufficient notice if their schedules change.
The Employment Rights Bill has also been amended by the government to include an extension of the period for which the protection award is applicable in cases of collective redundancy, from 90 days to 180 days.
Statutory sick pay eligibility, which Personnel Today reported yesterday will be amended to benefit low-paid employees.
The government will publish today the responses to five consultations about aspects of the Bill.
Angela Rayner, Deputy Prime Minister, said: “For far too long, millions have been subjected to insecure, low-paid and irregular employment, while our economy has suffered from low growth and low productivity.
“We are changing the tide, with the largest upgrade in workers’ rights for a generation. We will also be boosting our living standards as well as our growth prospects. Our economy desperately needs reforms.”
She said that the government had been working closely with business, unions, and workers in order to advance the bill.
Jonathan Reynolds, the Business Secretary, said that many businesses have already implemented worker-friendly practices and can attest to their positive impact on retention and productivity. We want to untap the full potential of the UK by attracting top talent and giving businesses the confidence to hire in order to grow the economy.
Employment Rights Bill Amendments
The government stated that all workers including around 900,000. agency workers should have access to a contract reflecting the hours they work regularly. The amendments made today will prevent agency work from becoming a loophole for the government’s plans to eliminate exploitative zero-hours contract.
The new rules will provide greater security to workers by ensuring they receive reasonable notice and proportionate payment when shifts are canceled, reduced or moved on short notice. However, employers can still maintain the flexibility necessary to manage their workforce.
Jane Gratton said, “Employers are going to be relieved that some amendments have been made, as this is a momentous occasion for the government.” The government has consulted with the business community, which is reflected in the decisions made on the future form of the legislation.
There are many things to be welcomed as sensible steps that will ensure employment benefits both for the business and for the individual. These include the nine-month probationary period, the promise of a lighter touch, and the return to the rule that only one establishment can be used for collective redundancy.
She added, however, that businesses are still cautious and the government must maintain its “positive engagement with firms” and “remain open to change”.
‘Crunch time’
Ben Harrison, director at Lancaster University’s Work Foundation, said that we are approaching crunch-time for the Employment Rights Bill of the Government as it approaches the report stage in the Parliament.
The news this morning that agency workers will be included in the proposed ban on exploitative zero-hours contract suggests that government plans to resist pressures to dilute reforms. Over a million workers are currently facing unpredictable hours because of these contracts. This is affecting their health and financial stability. This reform will ensure that workers, especially those aged between 16-24 years old who are 5,9 times more likely than older workers to be on zero hour contracts, enter a labour marketplace where good jobs offer security and flexibility.
Employment tribunals can now award more compensation when employers do not consult employees properly, such as in the case of rehiring and firing.
The government said that it wanted to increase the deterrent effect against employers who deliberately ignore their obligations to consult collectively and make sure this is not financially advantageous.
The government will also update the legal framework within which trade unions function to align it to modern work practices. It will ensure that workers have access to comparable rights and protects when they are working through an umbrella firm as they would if taken on directly by recruitment agencies.
Neil Carberry is the chief executive officer of the Recruitment and Employment Confederation. He said, “Regulating umbrella markets closes a gap in addressing noncompliance.” For years, recruiters have called for regulations to ensure an even playing field. As with all government changes, enforcement is key to protecting businesses and employees.”
Personnel Today will publish more information when the responses to the consultation are published.
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