The Workers (Predictable Terms and Conditions) Act 2023 would have created a new statutory right for certain atypical workers – for example, those on zero-hours contracts – to request a predictable working pattern.Although the Act received royal assent in September 2023 under the previous Conservative Government, it will no longer come into force this autumn as originally planned, and appears to have been scrapped altogether. However, the new Labour Government is likely to bring about similar changes under its proposed new Employment Rights Bill instead.
A spokesperson for the Department of Business and Trade recently confirmed that “We will introduce a new right to a contract that reflects the number of hours regularly worked as part of our significant and ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.”
This is consistent with Labour’s manifesto, which plans to ban “exploitative” zero-hour contracts and bring in a new right for workers to request a contract that reflects the hours regularly worked (by reference to a 12-week period).
Therefore, rather than “confus[ing] employers and workers with two different models” and legal mechanisms for predictability, the Labour Government has decided to scrap the 2023 Act and will implement its proposals through other means, most likely under its proposed new Employment Rights Bill.
Lilika Peutherer comments:
We don’t currently have much more information in respect of the proposed right to request a contract reflecting the hours regularly worked, or the new Employment Rights Bill (although the Bill may be laid before Parliament by 12 October 2024). The proposals will undoubtedly be subject to further consultation, and any new legislation is unlikely to take effect until autumn 2025 or later. Employers will therefore need to “watch this space”, but can start preparing by auditing their workforce to identify those on atypical or zero-hour contracts and review how the 12-week average calculation would impact them.
If you have any questions regarding the proposed changes, please contact a member of the team here.
We also invite you to sign up to one of our upcoming Employment Law Update seminars and/or webinar from 15 to 23 October 2024 for free, where we will be reviewing the numerous employment law reforms being proposed by the new Labour Government, as well as the practical implications for employers and HR professionals. To view our current events and register your place, please click here.
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