Parliamentary.ai

Overview

This bill aims to limit the use of zero-hours contracts in the UK by providing workers on such contracts with greater rights and protections. It introduces stricter definitions, requires employers to provide minimum working hours notice, ensures equal treatment with regular employees where applicable, and mandates employers to consider requests for fixed-term contracts. The bill also makes it unlawful for employers to unfairly penalize workers for exercising their rights under the bill.

Description

Defining Zero-Hours Contracts

The bill defines a zero-hours contract as one that doesn't specify guaranteed hours or specifies hours but requires availability exceeding those hours by more than 20%, excluding overtime paid at least 50% above the normal hourly rate.

Notice and Information

Employers must provide written notice of minimum working hours before the contract starts (or within seven days if given orally). Failure to provide this notice automatically classifies the contract as a zero-hours contract for the purposes of the bill.

Equal Treatment

Zero-hours contract workers must be treated equally to comparable workers on regular contracts, regarding terms and conditions (excluding working time allocation).

Reasonable Notice

Employers must give at least 72 hours' notice for work assignments or cancellations. Failure to do so incurs penalties, including payment at 150% of the normal rate for the missed assignment or the full payment for the canceled assignment.

Requests for Fixed-Term Employment

Employers must consider requests for fixed and regular hours from zero-hours contract workers (unless a similar request was made within the previous 12 weeks). Refusal must be justified by compelling business reasons, with the desire to use zero-hours contracts explicitly excluded as justification. Employment tribunals can be used to challenge refusals.

Automatic Offer of Fixed-Term Employment

After 12 weeks of continuous employment, or 12 weeks of employment out of 26 weeks, employers must offer a fixed-term contract with terms no less favorable than the highest hourly rate previously earned, and minimum hours equivalent to the worker’s longest working week during the relevant period.

Exclusivity Clauses

Exclusivity clauses (requiring workers to only work for one employer) are void, unless justified by compelling business reasons (e.g., confidentiality).

Detriment and Unfair Dismissal

It’s unlawful for employers to penalize workers for exercising their rights under the bill or for being employed elsewhere, unless justified by compelling business reasons and proportionality.

Government Spending

The bill doesn't directly specify government spending figures. However, increased enforcement and potential compensation awards from employment tribunals could increase government expenditure related to the legal process.

Groups Affected

Zero-hours contract workers: Increased rights and protection.

Employers: Increased obligations, potential increased costs from legal processes and compensation.

Employment tribunals: Increased workload processing claims.