Alongside Umbrella regulation, the Government also responded to its consultation on the application of zero hours contract measures on agency workers. Although the Government recognises the significant contribution the temporary recruitment sector makes to the UK economy, and the pre-existing rights, protection and regulation of the recruitment industry, the Government intends to extend further measures to end what it perceives as one-sided flexibility.
A right to guaranteed hours
After a specified reference period, which will be subject to further consultation, the end hirer will be responsible for offering its agency worker guaranteed hours. This must constitute an offer for the agency worker to enter into a contract to work for a number of hours that reflects the hours performed in the reference period.
A right to reasonable notice of shifts
The second measure introduces an obligation for both the work-finding agency and the end hirer to provide the agency worker with reasonable notice of shifts.
The right to reasonable notice of shift cancellation or a change to a shift
The responsibility to pay any short notice cancellation or curtailment payments to agency workers will fall on the recruitment agency. There will be a transition period whereby the agency will be able to recover these costs from the hirer during pre-existing arrangements, but following that period, it will be for the agency and hirer to decide amongst themselves how such costs will be covered, we anticipate through contractual means.
With change, inevitably comes cost
These measures pose significant change and potential cost to the recruitment industry. We are aware that key stakeholders are liaising with the Government so as not to apply a broad brush-stoke to an entire industry, which by-and-large don’t need such protection. Where abusive zero-hours contracts are utilised, they should be tackled, but not at the expense of the wider market.
These new rights may be difficult for agencies to navigate, and that’s without taking into account the additional reforms flowing from the Employment Rights Bill that will inevitably increase employment risk. Although further consultation and regulation is expected, the Employment Rights Bill continues to make its way through Parliament, posing significant complexity and change to the sector. Given this, now is the time to ensure you are working with an Umbrella company that is a trusted expert who can take on relevant employment risks whilst supporting your agency during this challenging period.
