Overview

This bill aims to clarify and strengthen the definition of "worker" in UK employment law, providing enhanced rights for workers and imposing stricter liabilities on employers, including those who contract out their services.

Description

The bill significantly alters the definitions of "worker" and "employee" in the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. The key changes are that both "worker" and "employee" will now have a single definition that removes previous ambiguities. This means that the burden of proof in legal disputes regarding employment status will now lie with the respondent (employer). The bill also introduces new sections into the Employment Rights Act 1996 concerning workers' hours.

Hours of Work

The bill introduces several key changes relating to hours of work for workers who have some degree of flexibility regarding their work schedule. These include the right to: (a) reasonable notice (minimum 7 days) of shifts and shift cancellations, with penalties for non-compliance including double pay and compensation for any losses; (b) fixed and regular weekly hours upon commencement of employment; (c) the right to written notice of fixed hours within seven days of commencing employment; (d) clear conditions under which additional hours can be requested by the employer and clear payment conditions for additional work; (e) protection against unauthorized requests for additional hours.

Contractor Liability

The bill introduces a provision holding contractors liable for their workers' unpaid wages in the case of subcontracting. If the immediate employer fails to pay wages, the third-party contractor will be jointly liable for the payment of outstanding wages.

Government Spending

The bill is unlikely to significantly increase government spending in the short term. The primary cost will be in potential increase in legal proceedings and associated costs for the government (for example associated with employment tribunals). The long-term impact on government spending will depend on the number of successful claims by workers.

Groups Affected

• Workers (especially those on zero-hour contracts or in the gig economy): The bill could significantly benefit these groups by improving their employment rights and protection against exploitative practices by providing improved wage protections, better notice periods and protection from unfair dismissal.
• Employers: The bill may increase the costs of employing workers due to increased liabilities for unpaid wages and more stringent requirements regarding hours of work.
• Recruitment agencies and contractors: The joint liability provision could significantly impact how these entities manage and operate.
• The Courts: This new legislation is likely to lead to an increase in disputes heard in employment tribunals.

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