Overview

The Workers (Rights and Definition) Bill aims to clarify the definition of "worker" and "employee" in UK employment law, strengthening workers' rights, particularly regarding hours of work and unpaid wages. It simplifies the employment status system and introduces stronger protections for workers against unfair practices by employers.

Description

Employment Status

The bill creates a single definition for "worker" and "employee," removing previous ambiguities. The burden of proof in legal disputes regarding employment status shifts to the employer (respondent) to demonstrate that the applicant is not a worker or employee. This definition applies to most employment situations, except for Crown employees in the armed forces.

Hours of Work

The bill introduces new provisions concerning hours of work, notably for those with variable or zero-hours contracts. Employers must give at least 7 days' notice of shifts; failure to do so results in double-time payment. Cancellation of shifts must also be compensated at double the standard rate, plus any additional monetary loss incurred by the worker. Every worker is entitled to fixed and regular weekly hours upon starting employment, with written notice of these hours required. Employers can request additional hours but only under strict conditions including written worker agreement, significantly higher pay (200%), and compensation for cancelled requests. The bill also clarifies existing regulations pertaining to employee working hours.

Liability for Unpaid Wages

The bill extends liability for unpaid wages to third-party contractors. If a worker's immediate employer fails to pay wages, the worker can sue the third-party client company for whom the work was being performed, thereby making the client jointly liable with the immediate employer. The definition of "wages" is expanded to include all payments related to employment.

Government Spending

The bill's financial implications are difficult to precisely quantify. The increased protections for workers could lead to increased employer costs in paying for unpaid wages, shift cancellations, and penalties for non-compliance. However, the government has not provided specific figures on the estimated costs.

Groups Affected

• Workers (especially those on zero-hours contracts or agency workers): The bill significantly benefits these groups by providing better protections regarding hours of work, notice periods, and payment for cancelled shifts and unpaid wages.
• Employers: Employers will face increased compliance costs and potential liabilities for non-compliance with the new regulations.
• Recruitment agencies and contractors: These groups will be directly affected by the extended liability for unpaid wages.
• Trade unions: The bill’s provisions may impact collective bargaining and worker representation.

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