Overview

The Workers (Rights and Definition) Bill aims to clarify the definition of "worker" and "employee," strengthening worker rights, particularly regarding hours of work and unpaid wages. It introduces stricter regulations on employers' responsibilities for notice periods, shift cancellations, and ensuring fair payment.

Description

This bill significantly alters employment status definitions within the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. It simplifies the definitions of "worker" and "employee," making them essentially identical for the purposes of employment rights. The burden of proof rests on the employer to demonstrate an individual is not a worker or employee.

Hours of Work

The bill introduces new sections to the Employment Rights Act 1996 concerning hours of work. Key changes include: a right to fixed and regular weekly hours from the start of employment; reasonable notice (at least 7 days) of shift requests and cancellations; and double pay for shift cancellations and unauthorized additional hours worked. Employers can request additional hours with strict conditions (written worker agreement with at least double pay and conditions concerning notice). Collective agreements between employers and recognized independent trade unions are also a permitted basis for exceeding standard hours.

Liability for Unpaid Wages

The bill introduces a clause holding contractors liable for unpaid wages owed by the immediate employer to a worker. If a contractor fails to pay a worker's wages, the client company is also held jointly liable. "Wages" include all emoluments including bonuses, sick pay, holiday pay and redundancy pay.

Government Spending

The bill is unlikely to directly increase government spending. However, increased compliance costs for businesses and potential legal challenges related to the bill's provisions could indirectly impact government resources through legal aid and enforcement activities. The exact financial implications are uncertain and would depend on the level of enforcement and litigation arising from the bill.

Groups Affected

• Workers (including zero-hour contract workers): Potentially benefit from improved rights regarding hours of work, notice periods, and payment for cancelled shifts or unauthorised additional hours. Increased clarity on employment status may facilitate better protection.
• Employers: Face increased obligations regarding notice, payment for cancelled shifts, and liability for unpaid wages, potentially incurring higher costs and administrative burdens.
• Recruitment agencies and contractors: Will be affected by the introduction of joint liability for unpaid wages owed by the immediate employer.
• Government agencies and departments: Will need to update procedures to comply with the new legislation.

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