The UK government is set to include agency workers in a ban on exploitative zero-hours contracts as part of amendments to its employment rights bill. Under the new rules, employers will be required to offer agency workers contracts that guarantee a minimum number of hours each week, ensuring greater job security.
The government has also announced that agency workers who choose to work on zero-hours contracts will be entitled to compensation if their shifts are changed at short notice. This change aims to protect workers who are vulnerable to sudden shift cancellations and alterations, particularly in industries such as hospitality, warehousing, and the NHS, where zero-hours contracts are prevalent.
Currently, over 1 million people in the UK work on zero-hours contracts. Despite the flexibility that these contracts can offer, many workers face uncertainty, as hundreds of thousands remain on such contracts with the same employer for years. The Trades Union Congress (TUC) has campaigned for agency workers to be included in the ban, warning that employers might circumvent the rules by hiring agency workers instead.
The proposed legislation also addresses broader worker welfare, including a new right to bereavement leave for parents who suffer a miscarriage. Parents will be entitled to two weeks of paid leave if a pregnancy loss occurs before 24 weeks’ gestation.
Furthermore, the bill guarantees that 1.3 million of the UK’s lowest-paid workers will receive sick pay from the first day of sickness, ensuring workers are compensated up to 80% of their weekly salary. Currently, the UK has one of the lowest statutory sick pay rates in the developed world, with some workers earning less than £123 per week not eligible for any compensation.
Despite the positive changes, some recruitment firms, including Hays, Adecco, and Manpower, have expressed concerns that the new rules may disrupt flexibility in the workforce. They argue that the measures could lead to fewer hires and delays in work, with more tasks being handled by self-employed workers instead.
Ben Harrison, director of the Work Foundation, praised the reforms, highlighting their importance for young workers who are disproportionately affected by zero-hours contracts. Harrison emphasized that the changes are vital at a time when the UK faces worker shortages and rising sickness levels.
With these proposed amendments, the UK government aims to create a more secure and flexible labour market that provides better protections for workers, especially those in low-wage, precarious employment.
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