Significant changes on the horizon: Zero hours protections to be applied to agency workers

What is the outcome of the consultation?

In short, the Government's consultation response confirms that the key protections offered to zero hours workers, such as a right to be offered guaranteed hours, a right to reasonable notice of shifts and any shift changes, will apply to agency workers.

It's worth highlighting that the Government has recognised the need to apply these measures to agency workers in a different way to how they are applied to those working under zero hours contracts. This is because of both the temporary nature of agency work and the tripartite relationship between the agency worker, the temporary work agency and the end hirer. How the measures will work in practice depends on secondary legislation, but key changes include those set out below.

Key changes to apply to agency workers

The offer of guaranteed hours

The new right for zero hours contractors to be offered "guaranteed hours" will be extended to agency workers. This change should prevent employers from circumventing the new "guaranteed hours" change for zero hours contracts, by simply hiring agency workers. The obligation to offer guaranteed hours to qualifying agency workers will be on the end hirer. Where work is genuinely seasonal or temporary, employers/hirers can offer temporary contracts. The Government will consult on what constitutes a temporary need.

Reasonable notice of shifts

Agency workers will have a right to reasonable notice of shifts. Both the employment agency and end hirer will be responsible for providing reasonable notice to agency workers. If a shift is changed at short notice, an agency worker will be entitled to compensation, and the Government is keen to ensure that a tribunal can apportion liability based on the responsibility of each party where unreasonable notice was provided.

Short notice cancellation and curtailment of shifts

Employment agencies will be responsible for paying agency workers for any short-notice cancellations or curtailments of shifts. However, agencies will have the right to recoup these costs where they have pre-existing arrangements with hirers that were entered into, and not subsequently modified, before a date two months after the Employment Rights Bill is passed. Two months after the Employment Rights Bill is passed, employment agencies should be aware that they can be required to make payments for short cancellations, shift movements and curtailments – and they can enter into and modify their arrangements with hirers to enable recovery of costs if appropriate.

Collective agreements can contract out of new rights

The Government has also tabled a new amendment which will allow a collective agreement to contract out of the rights to guaranteed hours and reasonable notice of shifts – for both workers and agency workers. For agency workers, the collective agreement can be with the person who has the contract with the agency worker.

Next steps

The Government will continue to work with stakeholders to develop detailed provisions for these measures through secondary legislation. Further consultations and guidance will be provided to ensure that all parties understand their new rights and obligations before the measures come into force. 

We encourage all employers who use agency workers to review these proposed changes and consider their potential impact on your operations. If you have any questions or need further assistance in understanding how these changes may affect you, please do not hesitate to contact Paul Reeves, Leanne Raven, Freya Cumpsty or your usual Stephenson Harwood contact.