Overview

The Workers (Definition and Rights) Bill aims to clarify the definition of "worker" and "employee" in UK employment law, strengthening workers' rights, particularly concerning hours of work and wage payment. It seeks to close loopholes that allow some employers to avoid their responsibilities towards their workforce.

Description

This bill significantly alters the legal definitions of "worker" and "employee," creating a single employment status for the purposes of employment rights and employer responsibilities. The burden of proof in legal disputes regarding employment status shifts to the respondent (employer) to demonstrate that the claimant is not a worker or employee. The bill introduces several key changes relating to workers' hours:

Hours of Work

The bill introduces a right to reasonable notice of shifts (minimum 7 days), with penalties for employers failing to comply. It mandates payment for cancelled shifts, including compensation for any related losses. The bill also grants workers the right to fixed and regular weekly hours upon commencement of employment and requires employers to give written notice of these hours.

The bill further regulates employers' requests for additional hours, requiring worker agreement in writing, higher pay rates (200%), and provisions for payment even if the request is rescinded. Requests exceeding a 10% increase over a 12-month reference period must be part of a collective agreement with a recognized trade union.

Liability for Unpaid Wages

The bill introduces joint employer liability for unpaid wages. If a worker's immediate employer fails to pay, the client contracting the employer's services becomes jointly liable for the unpaid wages. This includes a wide range of payments including fees, bonuses, commissions, sick pay, maternity pay, holiday pay, and redundancy pay.

Government Spending

The bill is expected to increase government spending due to the potential rise in successful employment tribunal claims. Precise figures are not available but the cost could be considerable, particularly in supporting enforcement of the new regulations and addressing increased tribunal caseloads.

Groups Affected

• Workers (especially zero-hour contract workers): This bill significantly strengthens their rights regarding hours of work, notice, payment, and protection against unfair treatment.
• Employers: Employers will face increased responsibilities and potential financial penalties for non-compliance with the new regulations. This applies particularly to those utilizing zero-hour contracts or engaging workers through contractors.
• Recruitment Agencies/Contractors: The joint liability provision could significantly increase their financial exposure concerning wage payments of workers supplied to clients.
• Government Departments: This bill may necessitate adjustments to their operational procedures and budgeting as a result of the new regulations.
• Employment Tribunals: The bill may lead to an increase in the number of cases handled by employment tribunals, as workers may be emboldened to bring actions.

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