The long anticipated and delayed consultation seeking views on the zero hours provisions in the Employment Rights Act has launched and is open for 12 weeks.
The resulting regulations will determine the scope and scale of the requirements to offer workers on low or zero-hour contracts a guaranteed hours contract with the hirer. Government is stressing that they are looking at a range of options within the confines of the primary legislation and to be fully informed it needs responses from as broad a range of employers, workers, recruitment and workforce solutions providers and other stakeholders as possible.
Tania Bowers, Global Public Policy Director at APSCo UK and OutSource commented:
“It is critical that staffing sector businesses from SMEs to multi nationals submit their own responses to this consultation, urge their clients and candidates to do so, and contribute to trade association responses. The government is seeking input on a range of preferences, and the business department is keen to stress it is in listening mode. For example, views are being sought on whether the reference period (before the guaranteed hour obligation kicks in) should be 12, 26 or 52 weeks. The impact of these regulations will vary hugely depending on where the final regulations land.
The economy faces many challenges including the fragility of the soft labour market, the impact of increased energy costs and taxes and the ongoing struggle to provide young people with skills, training and good work. Unlike directly engaged workers on zero hours, agency workers already have the protection of worker status and sector regulations including the Agency Workers Regulations, guaranteeing comparable pay and conditions. The staffing sector remains deeply concerned that this controversial reform will lead to even more UK employers turning to offshoring and technological alternatives to hiring, or “making do” with existing headcount. This is an existential threat to temporary contracting as it has evolved over decades and will require significant workforce strategy planning programmes across UK employers of all sizes. Given the existing pressures, particularly on SMEs, and the Department for Business and Trade’s own target to reduce administrative burden by 25%, this policy is counter intuitive.
Nonetheless, the guaranteed hours provisions were a manifesto promise and part of Rayner’s “first 100 days” Bill. The Act’s implementation timeline anticipates a go-live in 2027. APSCo UK will be working to provide evidence on the negative impacts the reforms will have on hiring. Our focus will be on minimising burdens on “just in time” sectors such as health and education while seeking to ensure technical fixed-term contracting is kept out of scope.”