Published byLawspeed Ltd

Zero hours threaten transfer fees

Zero hours threaten transfer fees

The current consultation on the application of zero hours rules to agency workers includes a specific question on transfer fees. A potential outcome could be that agency workers transfer to hirers after 12 weeks without a transfer fee being payable.

The consultation considers how the zero-hours rules, as included in the Employment Rights Bill could be applied to agency workers. The rules include an obligation of an ‘employer’ to offer the worker a guaranteed hours contract after completion of an initial review period, currently suggested to be 12 weeks. The consultation is asking whether, in the context of agency workers, it should be the hirer or agency that is obliged to offer this contract. If it is the hirer, the consultation also asks whether transfer fees should be payable. 

Agencies could therefore face the real prospect of both losing their agency worker and ongoing margin after 12 weeks, without being able to charge a transfer fee. Transfer fees are not the only issue addressed in this consultation. It also covers reasonable notice of work requirements and compensation for curtailment of cancellation of shifts, including who is liable.

The consultation is open until the 2nd of December. Lawspeed is working closely with the Association of Recruitment Consultancies (ARC) to collate the views of members, it is therefore essential that recruitment businesses respond to this consultation, outlining the potential economic impact on the industry plus any foreseen practical difficulties.

 

To give your views or for more information on any recruitment or employment law matter, please contact us on 01273 236 236 or email us at info@lawspeed.com.