Overview

The Employment and Workers' Rights Bill aims to improve the rights and conditions of agency workers in the UK, primarily by closing loopholes that allow for unequal pay and unfair dismissal, and providing agency workers with a clearer path towards permanent employment.

Description

Removal of Equal Pay Exemption

This section revokes parts of the Agency Workers Regulations 2010, removing exemptions that allowed for unequal pay between agency workers and permanent employees. It ensures agency workers receive equal pay for equal work.

Right Not to Be Unfairly Dismissed by Hirer

This section grants agency workers the right not to be unfairly dismissed by the company they are temporarily working for (the "hirer"). Dismissal for whistleblowing, pursuing legal action under the Act or representing workers is explicitly prohibited.

Right to Apply for Contract of Employment

Agency workers gain the right to apply for a permanent contract with the hirer after working under their supervision for a certain period (one month or more). The hirer must consider the application reasonably and provide a written decision within three months.

Duty to Assess Right to Contract of Employment

Hirers have a duty to assess whether an agency worker, working continuously for 12 weeks or six months in the past year, has a right to a permanent contract. They must conduct a reasonable assessment and provide a written decision within one month.

Entitlement to Contract of Employment

After two years of continuous work for a hirer, agency workers are entitled to a permanent contract unless the work is demonstrably short-term. The hirer must consider factors such as the length of employment and the likelihood of ongoing work.

Complaints to an Employment Tribunal

Agency workers can present complaints to an employment tribunal if a hirer fails to comply with the requirements regarding applications for permanent contracts, assessments or if they believe the "short-term" nature of their work was incorrectly determined.

Right to Written Statement

If an agency worker believes they should be a permanent employee under the bill's provisions, they can request a written statement confirming their status or explaining why they remain an agency worker. The statement must include objective grounds for remaining on assignment if that is the case.

Government Spending

The bill's financial impact on government spending is not explicitly stated within the text. However, increased workload for employment tribunals and potential legal costs associated with new claims are likely to incur some additional government expenditure.

Groups Affected

The bill primarily affects:

• Agency workers: They gain significant new rights regarding pay, dismissal, and the possibility of permanent contracts.
• Hirers (companies using agency workers): They face new obligations regarding equal pay, assessment processes, and the potential for increased employment tribunal cases.
• Employment Tribunals: They are likely to experience a rise in the number of cases brought under this new legislation.
• Temporary work agencies: While not directly targeted, the changes could influence their practices and relationships with both hirers and agency workers.

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